Compensation & Benefits Library™ gives you accurate answers and practical guidance to help you design, analyze, compare, administer, and communicate compensation and benefits programs...
Jan. 29 — The Internal Revenue Service provided interim guidance on how the definition of an “expatriate health plan” applies for purposes of the Affordable Care Act's health insurance providers fee.
The guidance, Notice 2016-14, issued Jan. 29, addressed questions on how the fee applies to expatriate plans under the Expatriate Health Coverage Clarification Act of 2014, which exempted these plans from the fee beginning in 2016. The fee generally is imposed on covered entities that provide health insurance for U.S. health risks.
The IRS said the definition would be similar to that of a medical loss ratio in previous heath insurance provider fee regulations. According to that definition, expatriate policies are defined as predominately group health insurance policies that provide coverage to employees “substantially all” of whom are (1) working outside their country of citizenship, (2) working outside their country of citizenship and outside the employer's country of domicile, or (3) non-U.S. citizens working in their home country.
The IRS emphasized that the definition in the notice applies “solely and for this limited purpose” in 2016 to assist in complying with the new expatriate health coverage legislation. The government is developing proposed regulations on the legislation that will address the definition of an expatriate health plan, the agency said.
The notice offered guidance for a covered entity—including controlled group members, if any—that has already reported direct premiums written for expatriate health plans for 2016.
If so, the entity must exclude those direct premiums written for expatriate health plans from the direct premiums written (column f) on its 2016 Form 8963, Report of Health Insurance Provider Information, the IRS said.
Notice 2016-14 is scheduled to be published in Internal Revenue Bulletin 2016-7, dated Feb. 16.
For more information, see Compensation and Benefits Library’s Tax Aspects of Health Plans Under the Affordable Care Act chapter.
To contact the reporter on this story: Alison Bennett in Washington at email@example.com
To contact the editor responsible for this story: Brett Ferguson at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)