The IRS, the Department of Labor and the Department of Health and Human Services recently issued proposed regulations(REG-132751-14) that would amend existing regulations regarding excepted benefits. These benefits are generally exempt from requirements under the Health Insurance Portability and Accountability Act and the Affordable Care Act.

The proposed rules would allow group health plan sponsors, in limited circumstances, to offer wraparound coverage to employees purchasing individual health insurance in the private market, including through the Health Insurance Marketplace. The rule proposes two pilot programs for wraparound coverage. One pilot would allow wraparound benefits only for multistate plans in the Health Insurance Marketplace, and another would allow wraparound benefits for part-time workers who could otherwise qualify for a flexible savings arrangement and enroll in an individual market plan.