This week, Congress passed legislation that exempts expatriate health plans from the health care coverage mandated in the ACA. H.R.4414 ensures that U.S. nationals working abroad, and the companies that employ them, are now exempt from the requirements and penalties of the ACA providing they do provide an expatriate health insurance plan.
The exemption was made to ensure domestic insurers offering coverage to these companies and employees were able to compete with foreign insurers that do not have to comply with ACA regulations. Some of these insurers had been considering moving the divisions and employees that write these expatriate plans overseas.
Expatriate health insurance is an excellent fit for captives and this exemption is great news for employers that have expatriate workers and are considering writing their employee benefits into a captive.
Of course, this is just another reminder that the ACA is very much a work in progress and there are many wrinkles and nuances still to be ironed out. You can be sure that we will stay on top of the ACA developments that matter most to employers and bring you summaries like this one as things develops. For ACA updates in your inbox, as they happen, please sign up for our email updates in the box to the left of this article.
Image credit: WorldIslandInfo.com via flickr
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