Recently released proposed regulations provide rules for expatriate health plans, expatriate health plan issuers and qualified expatriates under the Expatriate Health Coverage Clarification Act of 2014 (EHCCA).
The EHCCA provides that, with certain exceptions, Affordable Care Act (ACA) requirements don't apply to expatriate health plans, the issuers of expatriate health coverage and employers in their capacity as sponsors of expatriate health plans. Examples of exceptions to this general rule include that expatriate health plans are treated as minimum essential coverage under Section 5000A, the employer shared responsibility requirements of Section 4980H continue to apply, and the applicable Form 1094 and Form 1095 reporting requirements apply, with certain modifications.
These proposed regulations define an expatriate health plan as a plan offered to qualified expatriates that satisfies certain requirements. Qualified expatriates include individuals in one of three categories:
- Foreign workers in the U.S.
- Individuals who work abroad for a certain period of time
- Students and missionaries
The proposed regulations address other rules that apply to expatriate health plans, including the services that must be covered by the plan, the application of the ACA minimum value requirements, coverage for dependents up to age 26 and pre-existing condition exclusions.
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