This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

13995 

Vol. 80, No. 52 

Wednesday, March 18, 2015 

1Public Law 104–204, 110 Stat. 2944 (September 

26, 1996). 

2Public Law 110–343, 122 Stat. 3881 (October 3, 

2008). 

3Public Law 104–204, 110 Stat. 2935 (September 

26, 1996). 

4Public Law 105–277, 112 Stat. 2681–436 

(October 21, 1998). 

5Public Law 110–233, 122 Stat. 881 (May 21, 

2008). 

6Public Law 111–3, 123 Stat. 65 (February 4, 

2009). 

7Public Law 110–381, 122 Stat. 4081 (October 9, 

2008). 

8The Patient Protection and Affordable Care Act, 

Public Law 111–148, was enacted on March 23, 

2010, and the Health Care and Education 

Reconciliation Act, Public Law 111–152, was 

enacted on March 30, 2010. (These statutes are 

collectively known as the ‘‘Affordable Care Act’’.) 

9The term ‘‘group health plan’’ is used in title 

XXVII of the PHS Act, part 7 of ERISA, and chapter 

100 of the Code, and is distinct from the term 

‘‘health plan,’’ as used in other provisions of title 

I of the Affordable Care Act. The term ‘‘health plan’’ 

does not include self-insured group health plans. 

10See 62 FR 16894, 16903 (Apr. 8, 1997), which 

states that these benefits are generally not health 

insurance coverage. 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 54 

[TD 9714] 

RIN 1545–BM44 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2590 

RIN 1210–AB70 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

45 CFR Part 146 

[CMS–9946–F2] 

RIN 0938–AS52 

Amendments to Excepted Benefits 

AGENCY: Internal Revenue Service, 

Department of the Treasury; Employee 

Benefits Security Administration, 

Department of Labor; Centers for 

Medicare & Medicaid Services, 

Department of Health and Human 

Services. 

ACTION: Final rules. 

SUMMARY: This document contains final 

regulations that amend the regulations 

regarding excepted benefits under the 

Employee Retirement Income Security 

Act of 1974, the Internal Revenue Code, 

and the Public Health Service Act to 

specify requirements for limited 

wraparound coverage to qualify as an 

excepted benefit. Excepted benefits are 

generally exempt from the requirements 

that were added to those laws by the 

Health Insurance Portability and 

Accountability Act and the Affordable 

Care Act. 

DATES: These final regulations are 

effective on May 18, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Amy Turner or Elizabeth Schumacher, 

Employee Benefits Security 

Administration, Department of Labor, at 

(202) 693–8335; Karen Levin, Internal 

Revenue Service, Department of the 

Treasury, at (202) 317–5500; Jacob 

Ackerman, Centers for Medicare & 

Medicaid Services, Department of 

Health and Human Services, at (410) 

786–1565. 

Customer Service Information: 

Individuals interested in obtaining 

information from the Department of 

Labor concerning employment-based 

health coverage laws, may call the EBSA 

Toll-Free Hotline at 1–866–444–EBSA 

(3272) or visit the Department of Labor’s 

Web site (http://www.dol.gov/ebsa). In 

addition, information from HHS on 

private health insurance for consumers 

can be found on the Centers for 

Medicare & Medicaid Services (CMS) 

Web site (www.cms.gov/cciio) and 

information on health reform can be 

found at www.HealthCare.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Health Insurance Portability and 

Accountability Act of 1996 (HIPAA), 

Public Law 104–191, 110 Stat. 1936 

added title XXVII of the Public Health 

Service Act (PHS Act), part 7 of the 

Employee Retirement Income Security 

Act of 1974 (ERISA), and chapter 100 of 

the Internal Revenue Code (the Code), 

providing portability and 

nondiscrimination provisions with 

respect to health coverage. These 

provisions of the PHS Act, ERISA, and 

the Code were later augmented by other 

consumer protection laws, including the 

Mental Health Parity Act of 1996,1 the 

Mental Health Parity and Addiction 

Equity Act of 2008,2 the Newborns’ and 

Mothers’ Health Protection Act,3 the 

Women’s Health and Cancer Rights 

Act,4 the Genetic Information 

Nondiscrimination Act of 2008,5 the 

Children’s Health Insurance Program 

Reauthorization Act of 2009,6 Michelle’s 

Law,7 and the Affordable Care Act.8

The Affordable Care Act reorganizes, 

amends, and adds to the provisions of 

part A of title XXVII of the PHS Act 

relating to group health plans and 

health insurance issuers in the group 

and individual markets. The term 

‘‘group health plan’’ includes both 

insured and self-insured group health 

plans.9 Section 715(a)(1) of ERISA and 

section 9815(a)(1) of the Code, as added 

by the Affordable Care Act, incorporate 

the provisions of part A of title XXVII 

of the PHS Act into ERISA and the Code 

to make them applicable to group health 

plans and health insurance issuers 

providing health insurance coverage in 

connection with group health plans. 

The PHS Act sections incorporated by 

these references are sections 2701 

through 2728. 

Sections 2722 and 2763 of the PHS 

Act, section 732 of ERISA, and section 

9831 of the Code provide that the 

requirements of title XXVII of the PHS 

Act, part 7 of ERISA, and chapter 100 

of the Code, respectively, generally do 

not apply to excepted benefits. Excepted 

benefits are described in section 2791 of 

the PHS Act, section 733 of ERISA, and 

section 9832 of the Code. 

The parallel statutory provisions 

establish four categories of excepted 

benefits. The first category includes 

benefits that are generally not health 

coverage 10 (such as automobile 

insurance, liability insurance, workers 

compensation, and accidental death and 

dismemberment coverage). The benefits 

in this category are excepted in all 

circumstances. In contrast, the benefits 

in the second, third, and fourth 

categories are types of health coverage 


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13996 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 

11 26 CFR 54.9831–1(c)(3)(v); 29 CFR 

2590.732(c)(3)(v); 45 CFR 146.145(b)(3)(v). 

12See the discussion in the 2014 final regulations 

concerning the application of these requirements to 

benefits such as limited-scope dental and vision 

benefits and employee assistance programs at 79 FR 

59131 (Oct. 1, 2014). 

13 26 CFR 54.9831–1(c)(4); 29 CFR 2590.732(c)(4); 

45 CFR 146.145(b)(4). See also Q7 in Affordable 

Care Act Implementation FAQs Part XI, available at 

http://www.dol.gov/ebsa/faqs/faq-aca11.html and 

http://www.cms.gov/CCIIO/Resources/Fact-Sheetsand-FAQs/aca_implementation_faqs11.html. 

14On February 13, 2015, the Departments issued 

guidance to clarify whether insurance coverage that 

supplements group health coverage by providing 

additional categories of benefits (and does not also 

fill gaps in group health plan coverage for costsharing obligations, such as coinsurance or 

deductibles) can be characterized as an excepted 

benefit. See Affordable Care Act Implementation 

FAQs Part XXIII, available at http://www.dol.gov/

ebsa/faqs/faq-aca23.html and http://www.cms.gov/

CCIIO/Resources/Fact-Sheets-and-FAQs/

Downloads/Supplmental-FAQ_2-13-15-final.pdf. 

15 26 CFR 54.9831–1(c)(5); 29 CFR 2590.732(c)(5); 

45 CFR 146.145(b)(5). The Departments issued 

additional guidance regarding supplemental health 

insurance coverage as excepted benefits. See EBSA 

Field Assistance Bulletin No. 2007–04 (available at 

http://www.dol.gov/ebsa/pdf/fab2007-4.pdf); CMS 

Insurance Standards Bulletin 08–01 (available at 

http://www.cms.gov/CCIIO/Resources/Files/

Downloads/hipaa_08_01_508.pdf); and IRS Notice 

2008–23 (available at http://www.irs.gov/irb/2008- 

07_IRB/ar09.html). 

16 69 FR 78720 (Dec. 30, 2004). 

17 78 FR 77632.(Dec. 23, 2014). 

18 79 FR 59131 (Oct. 1, 2014). 

19 79 FR 59131 (Oct. 1, 2014). 

20 79 FR 76931 (Dec. 23, 2014). 

21See section 1251 of the Affordable Care Act, 29 

CFR 2590.715–1251, and 45 CFR 147.140. 

22As described in CMS Insurance Standards 

Bulletin (March 5, 2014) available at: http://

www.cms.gov/CCIIO/Resources/Regulations-andGuidance/Downloads/transition-to-compliantpolicies-03-06-2015.pdf. 

but are excepted only if certain 

conditions are met. 

The second category of excepted 

benefits is limited excepted benefits, 

which may include limited scope vision 

or dental benefits, and benefits for longterm care, nursing home care, home 

health care, or community based care. 

Section 2791(c)(2)(C) of the PHS Act, 

section 733(c)(2)(C) of ERISA, and 

section 9832(c)(2)(C) of the Code 

authorize the Secretaries of Health and 

Human Services (HHS), Labor, and the 

Treasury (collectively, the Secretaries) 

to issue regulations establishing other, 

similar limited benefits as excepted 

benefits. The Secretaries exercised this 

authority previously with respect to 

certain health flexible spending 

arrangements (health FSAs).11 To be 

excepted under this second category, 

the statute (specifically, ERISA section 

732(c)(1), PHS Act section 2722(c)(1), 

and Code section 9831(c)(1)) provides 

that limited benefits must either: (1) Be 

provided under a separate policy, 

certificate, or contract of insurance; or 

(2) otherwise not be an integral part of 

a group health plan, whether insured or 

self-insured.12

The third category of excepted 

benefits, referred to as ‘‘noncoordinated 

excepted benefits,’’ includes both 

coverage for only a specified disease or 

illness (such as cancer-only policies), 

and hospital indemnity or other fixed 

indemnity insurance. In the group 

market, these benefits are excepted only 

if all of the following conditions are 

met: (1) The benefits are provided under 

a separate policy, certificate, or contract 

of insurance; (2) there is no 

coordination between the provision of 

such benefits and any exclusion of 

benefits under any group health plan 

maintained by the same plan sponsor; 

and (3) the benefits are paid with 

respect to any event without regard to 

whether benefits are provided under 

any group health plan maintained by 

the same plan sponsor.13

The fourth category of excepted 

benefits is supplemental excepted 

benefits.14 Such benefits must be: (1) 

Coverage supplemental to Medicare, 

coverage supplemental to the Civilian 

Health and Medical Program of the 

Department of Veterans Affairs 

(CHAMPVA) or to Tricare, or similar 

coverage that is supplemental to 

coverage provided under a group health 

plan; and (2) provided under a separate 

policy, certificate, or contract of 

insurance.15

In 2004, the Departments of the 

Treasury, Labor, and HHS published 

final regulations with respect to 

excepted benefits (the HIPAA 

regulations).16 (Subsequent references to 

the ‘‘Departments’’ include all three 

Departments, unless the headings or 

context indicate otherwise.) 

On December 24, 2013, the 

Departments published additional 

proposed regulations with respect to the 

second category of excepted benefits, 

limited excepted benefits (2013 

proposed regulations).17 The 2013 

proposed regulations proposed to: (1) 

Eliminate the requirement that 

participants in self-insured plans pay an 

additional premium or contribution for 

limited-scope vision or dental benefits 

to qualify as benefits that are not an 

integral part of the plan; (2) set forth the 

criteria under which employee 

assistance programs (EAPs) that do not 

provide significant benefits in the 

nature of medical care constitute 

excepted benefits; and (3) allow plan 

sponsors in certain limited 

circumstances to offer, as excepted 

benefits, coverage that wraps around 

certain individual health insurance 

coverage. The intent of limited 

wraparound coverage is to permit 

employers to provide certain employees, 

dependents, and retirees who are 

enrolled in some type of individual 

market coverage with overall coverage 

that is generally comparable to the 

coverage provided under the employers’ 

group health plan, without eroding 

employer-sponsored coverage. 

After consideration of comments 

received on the 2013 proposed 

regulations, the Departments published 

final regulations regarding dental and 

vision benefits and EAP benefits on 

October 1, 2014 (2014 final 

regulations).18 In the 2014 final 

regulations, the Departments also stated 

their intent to publish regulations that 

addressed limited wraparound coverage 

in the future, taking into account the 

extensive comments received on this 

issue.19 After consideration of 

comments on the 2013 proposed 

regulations, on December 23, 2014, the 

Departments published new proposed 

regulations with respect to limited 

wraparound coverage (2014 proposed 

regulations), which set forth five 

requirements under which limited 

benefits provided through a group 

health plan that wrap around either 

eligible individual insurance or 

coverage under a Multi-State Plan 

would constitute excepted benefits.20 A 

description of the 2014 proposed 

regulations is set forth below, together 

with a summary of the comments 

received on the 2014 proposed 

regulations and an overview of these 

final regulations. 

II. Overview of the Final Regulations 

Under the 2014 proposed regulations, 

limited benefits provided through a 

group health plan that wrap around 

either (1) eligible individual health 

insurance, or (2) coverage under a 

Multi-State Plan (collectively referred to 

as ‘‘limited wraparound coverage’’) 

could constitute excepted benefits, if 

five requirements were met. For this 

purpose, the 2014 proposed regulations 

defined ‘‘eligible individual health 

insurance’’ as individual health 

insurance coverage that is not a 

grandfathered health plan,21 not a 

transitional individual health insurance 

market plan,22 and does not consist 

solely of excepted benefits. The 

preamble to the 2014 proposed 

regulations acknowledged that, in States 

that elect to establish a Basic Health 

Program (BHP), certain low-income 

individuals (for example, those with 

household income between 133 percent 

and 200 percent of the Federal poverty 


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23 79 FR 76935, footnote 32. 

24 79 FR 76935 

25 79 FR 76936 

26 Id. 

level) who would otherwise qualify for 

a tax credit to obtain a qualified health 

plan through an Exchange would 

instead be enrolled in coverage through 

the BHP. The Departments invited 

comments on how an employer might 

make wraparound coverage available to 

BHP enrollees.23

Comments addressing the BHP all 

supported permitting wraparound of 

BHP coverage. The Departments agree 

and, therefore, these final regulations 

permit limited wraparound coverage of 

BHP coverage in the same manner as 

limited wraparound coverage of eligible 

individual health insurance. 

A. Covers Additional Benefits 

The 2014 proposed regulations stated 

that limited wraparound coverage 

would have to be specifically designed 

to wrap around eligible individual 

health insurance or Multi-State Plan 

coverage. That is, the limited 

wraparound coverage would have to 

provide meaningful benefits beyond 

coverage of cost sharing under the 

eligible individual health insurance or 

Multi-State Plan coverage. The preamble 

to the 2014 proposed regulations 

provided examples, such as that limited 

wraparound coverage could provide 

coverage for expanded in-network 

medical clinics or providers, or provide 

benefits that are not essential health 

benefits (EHBs) and that are not covered 

under the eligible individual health 

insurance.24 The preamble to the 2014 

proposed regulations also provided that 

limited wraparound coverage would not 

be permitted to provide benefits solely 

under a coordination-of-benefits 

provision and could not be an accountbased reimbursement arrangement.25

Limited wraparound coverage that 

covers solely cost sharing would not be 

permissible, as stated in the preamble to 

the 2014 proposed regulations, because 

reduced cost sharing can be obtained by 

choosing an individual health insurance 

policy with a higher actuarial value (for 

example, a platinum plan with a 90 

percent actuarial value).26 The 

Departments invited comment on safe 

harbors standardizing the benefits in the 

limited wraparound coverage that could 

be established. 

Many commenters requested 

additional clarity on the type of benefits 

that could be offered as meaningful 

benefits in limited wraparound 

coverage. Suggestions included 

reimbursement for the full cost of 

primary care, the cost of prescription 

drugs not on the formulary of the 

primary plan, ten physician visits per 

year, services considered to be provided 

out-of-network by the primary plan, 

access to onsite clinics or specific health 

facilities at no cost, or benefits targeted 

to a specific population (such as 

coverage for certain orthopedic injuries), 

home health coverage, or coverage of 

other benefits that are not covered EHBs 

under the primary plan. The 

Departments consider all of these 

examples to qualify as additional, 

meaningful benefits under this first 

requirement to be limited wraparound 

coverage that qualifies as excepted 

benefits. As discussed further below, the 

Departments reiterate that limited 

wraparound coverage that is an 

excepted benefit cannot be an accountbased mechanism and instead must be 

a risk-sharing product that covers a 

defined package of services. 

B. Limited in Amount 

For the second requirement to be 

limited wraparound coverage that 

qualifies as excepted benefits, the 

Departments proposed that the limited 

wraparound coverage be limited in 

amount. Specifically, the 2014 proposed 

regulations provided that the annual 

cost of coverage per employee (and any 

covered dependents) under the limited 

wraparound coverage could not exceed 

the maximum annual contribution for 

health FSAs (which was $2,500 in 

2014), indexed in the manner prescribed 

under Code section 125(i)(2) (which 

amounts to $2,550 for 2015), and the 

cost of coverage would include both 

employer and employee contributions 

towards coverage and be determined in 

the same manner as the applicable 

premium is calculated under a COBRA 

continuation provision. The preamble to 

the 2014 proposed regulations stated 

that the bright-line limitation was 

intended to be simpler to administer 

than a cap of 15 percent of the cost of 

the plan sponsor’s primary coverage as 

set forth in the 2013 proposed 

regulations. 

Many comments stated that the limits 

on the amount should be higher so that 

individuals eligible for the limited 

wraparound coverage would not 

experience gaps in coverage. Some 

commenters suggested that the 

Departments consider an alternative, 

referencing the higher health savings 

account (HSA) limits, which are $3,350 

for individual coverage and $6,650 for 

families in 2015, indexed annually. 

Others suggested the Departments set 

the limit as the greater of: The 

maximum permitted annual salary 

reduction towards a health FSA (as was 

set forth in the 2014 proposed 

regulations), or a percentage of the cost 

of coverage under the primary plan (as 

was set forth in the 2013 proposed 

regulations). 

These final regulations adopt the last 

suggestion. Either the dollar or percent 

limitation would satisfy the 

Departments’ objective of ensuring that 

the limited wraparound coverage 

provides a limited benefit, as required 

by the statute, and be similar to other 

limited excepted benefits (that is, dental 

benefits, vision benefits, long term care, 

nursing home care, home health care, 

community-based care, or health FSAs 

as described in 26 CFR 54.9831–1(c)(3); 

29 CFR 2590.732(c)(3); 45 CFR 

146.145(b)(3)). The percentage, as in the 

2013 proposed regulations, is 15 percent 

of the cost of coverage under the 

primary plan. 

The final regulations do not adopt the 

suggestion to use much higher limits on 

the cost of coverage (for example, the 

HSA limits). Too large a benefit that is 

not limited in scope (c.f., limited-scope 

dental and vision excepted benefits) 

would not constitute a ‘‘similar, limited 

benefit’’ under ERISA section 733(c)(2), 

PHS Act section 2791(c)(2), or Code 

section 9832(c)(2). 

The Departments also received 

requests for clarification regarding the 

administration of the second 

requirement (that is, that the limited 

wraparound coverage be limited in 

amount). Some comments requested 

that the determination of the cost of 

coverage be permitted to be made on an 

aggregate basis in advance of each plan 

year by an actuary, and not based on 

actual experience of the group or any 

individual during the plan year. This 

approach is precisely the approach that 

was intended by the Departments. As 

stated earlier, to qualify as excepted 

benefits, the limited wraparound 

coverage could not be an account-based 

reimbursement arrangement. That is, the 

coverage must include a risk-sharing 

element. As such, making a 

determination regarding the cost of 

coverage must occur on an aggregate 

basis. Moreover, to the extent this 

determination for a given plan year is 

made on sound actuarial principles that 

are appropriately documented, the 

actual experience of the group or any 

individual during the plan year would 

not be a factor in determining the cost 

of coverage for that plan year (although 

it could impact future years by 

providing additional information on 

which the actuarial estimate of the cost 

of coverage for future years would be 

based). The final regulations include 

this clarification. 


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13998 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 

27 29 CFR 2590.715–2704 and 45 CFR 147.108. 

See also Q2 in Affordable Care Act Implementation 

FAQs Part XXII, available at http://www.dol.gov/

ebsa/faqs/faq-aca22.html and http://www.cms.gov/

CCIIO/Resources/Fact-Sheets-and-FAQs/

Downloads/FAQs-Part-XXII-FINAL.pdf regarding 

the prohibition against offering employees with 

high claims risk a choice between enrollment in its 

standard group health plan or cash. 

28 26 CFR 54.9802–1, 29 CFR 2590.702, and 45 

CFR 146.121. 

C. Nondiscrimination 

Under the 2014 proposed regulations, 

the third requirement for limited 

wraparound coverage to qualify as 

excepted benefits related to 

nondiscrimination. Specifically, the 

Departments proposed three subrequirements relating to 

nondiscrimination. First, the 

wraparound coverage could not impose 

any preexisting condition exclusion, 

consistent with the requirements of 

section 2704 of the PHS Act (as 

incorporated into section 715 of ERISA 

and section 9815 of the Code) and 

implementing regulations.27 Second, the 

wraparound coverage could not 

discriminate against individuals in 

eligibility, benefits, or premiums based 

on any health factor of an individual (or 

any dependent of the individual), 

consistent with the requirements of 

section 702 of ERISA, section 9802 of 

the Code, and section 2705 of the PHS 

Act (as incorporated into section 715 of 

ERISA and section 9815 of the Code) 

and implementing regulations.28

Finally, neither the primary group 

health plan coverage nor the limited 

wraparound coverage could fail to 

comply with section 2716 of the PHS 

Act (as incorporated into section 715 of 

ERISA and section 9815 of the Code) or 

fail to be excludible from income with 

respect to any individual due to the 

application of section 105(h) of the Code 

(as applicable). These final regulations 

adopt the approach outlined in the 2014 

proposed regulations. 

The Departments received two 

comments on this third requirement. 

One commenter inquired as to the 

potential interaction between excepted 

benefits and the excise tax on high cost 

employer-sponsored health coverage 

under Code section 4980I. The Treasury 

and the IRS issued Notice 2015–16 on 

February 23, 2015 describing potential 

approaches with regard to a number of 

issues under Code section 4980I and 

inviting comments by May 15, 2015. 

Issues relating to Code section 4980I 

will be addressed as part of that 

rulemaking. Another commenter 

requested that the Departments consider 

‘‘modernizing’’ the nondiscrimination 

provisions under Code section 105(h) 

and section 2716 of the PHS Act relating 

to prohibiting discrimination in favor of 

highly compensated employees. The 

Departments are considering this 

suggestion and other comments 

previously received for purposes of 

future guidance relating to these 

provisions. 

D. Plan Eligibility Requirements 

The fourth requirement to qualify as 

excepted benefits concerned plan 

eligibility requirements. First, under the 

2014 proposed regulations, individuals 

eligible for the limited wraparound 

coverage could not be enrolled in 

excepted benefit coverage that is a 

health FSA. One commenter suggested 

permitting dual enrollment in limited 

wraparound coverage and health FSA 

coverage. However, as described earlier, 

the Departments are using their 

discretion under ERISA section 

733(c)(2), PHS Act section 2791(c)(2), 

and Code section 9832(c)(2) to define 

‘‘other similar, limited benefits’’ as 

excepted benefits and do not adopt this 

suggestion. To ensure that wraparound 

coverage is a limited benefit, like health 

FSAs, the Departments do not intend to 

allow plan sponsors to combine 

multiple excepted benefits into an 

arrangement that functions as a material 

substitute for primary group health plan 

coverage and still be exempt from the 

health market reforms. 

Under the 2014 proposed regulations, 

as part of the fourth requirement for 

limited wraparound coverage to 

constitute excepted benefits, coverage 

would be required to comply with one 

of two alternative sets of standards 

relating to eligibility and benefits: one 

set of plan eligibility requirements for 

wraparound benefits offered in 

conjunction with eligible individual 

health insurance (or BHP coverage) for 

persons who are not full-time 

employees, and a separate set of 

standards for coverage that wraps 

around certain Multi-State Plan 

coverage. As described further below, 

limited wraparound coverage for 

persons who are not full-time 

employees is intended for employers 

that are generally offering affordable, 

minimum value coverage to their fulltime workers but want to offer an 

additional limited benefit to their parttime workers. Limited wraparound 

coverage offered in conjunction with a 

Multi-State Plan is intended for 

employers that were offering reasonably 

comprehensive coverage prior to the 

promulgation of these final rules, and 

wish to offer limited wraparound 

coverage while still contributing 

roughly the same total amount toward 

their employees’ health benefits. 

1. Limited Wraparound Coverage 

Offered in Conjunction With Eligible 

Individual Health Insurance (or BHP 

Coverage) for Persons Who Are Not 

Full-Time Employees 

As under the 2014 proposed 

regulations, limited coverage that wraps 

around eligible individual health 

insurance (or BHP coverage) for an 

individual who is not a full-time 

employee is required to satisfy three 

standards relating to plan eligibility. 

i. Employer Obligations With Respect to 

Full-Time Employees 

First, for each year that wraparound 

coverage is offered, the employer that is 

the sponsor of the plan offering 

wraparound coverage, or the employer 

participating in a plan offering 

wraparound coverage, must offer to its 

full-time employees coverage that: (1) Is 

substantially similar to coverage that the 

employer would need to offer to its fulltime employees in order not to be 

subject to a potential assessable 

payment under the employer shared 

responsibility provisions of section 

4980H(a) of the Code, if such provisions 

were applicable (that is, substantially 

similar to an offer of minimum essential 

coverage (as defined in Code section 

5000A(f)) to at least 95 percent of its 

full-time employees (or to all but five of 

its full-time employees, if five is greater 

than five percent of its full-time 

employees)); (2) provides minimum 

value (as defined in section 

36B(c)(2)(C)(ii) of the Code); and (3) is 

reasonably expected to be affordable 

(permitting use of the safe harbor rules 

for determining affordability set forth in 

26 CFR 54.4980H–5(e)(2)). The 

preamble to the 2014 proposed 

regulations stated that, if a plan or 

issuer providing limited wraparound 

coverage takes reasonable steps to 

ensure that employers disclose 

necessary information regarding their 

coverage offered and affordability 

information to the plan or issuer, the 

plan or issuer could rely on reasonable 

representations by employers regarding 

this information, unless the plan or 

issuer has specific knowledge to the 

contrary. 

Several commenters requested that, in 

the context of small employers and 

multiemployer plans, there be an 

exemption from the requirement that, to 

be considered excepted benefits, the 

employer offer to its full-time 

employees coverage that is substantially 

similar to coverage that the employer 

would need to offer pursuant to Code 

section 4980H(a). However, these final 

excepted benefits regulations are 

designed to allow plan sponsors an 


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Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 13999 

29See ERISA section 601, Code section 4980B and 

PHS Act section 2201, which requires enrollment 

of qualified beneficiaries (including spouses) after 

a loss of coverage in connection with a qualifying 

event. 

option to offer additional workers health 

coverage comparable to that which they 

already offer, rather than to serve as a 

substitute for primary coverage. 

Other commenters asked the 

Departments to clarify that any Code 

section 4980H-related requirements are 

met in instances in which the employer 

has no full-time employees. These final 

regulations clarify that, in the event that 

the employer has no full-time 

employees, but the plan covers retirees 

(and their dependents), or covers parttime employees (and their dependents), 

the requirements to provide coverage 

that is substantially similar to coverage 

that the employer would need to offer 

to its full-time employees in order not 

to be subject to a potential assessable 

payment section 4980H(a) of the Code, 

that provides minimum value, and that 

is reasonably expected to be affordable, 

are all considered satisfied. 

ii. Limited Eligibility 

Second, eligibility for the limited 

wraparound coverage must be limited to 

employees who are not full-time 

employees (and their dependents), or 

who are retirees (and their dependents). 

In the preamble to the 2014 proposed 

regulations, the Departments stated that 

‘‘full-time employees’’ would be 

employees who are reasonably expected 

to work at least an average of 30 hours 

per week. Plans and issuers would not 

be required to define ‘‘full-time 

employees’’ strictly in accordance with 

the rules of Code section 4980H, but 

employers could rely on the Code 

section 4980H definition, or any 

reasonable interpretation of who is 

reasonably expected to work an average 

of 30 hours a week, for purposes of this 

provision. The Departments invited 

comment on this approach. 

Some commenters argued that plan 

sponsors should be able to offer limited 

coverage that wraps around eligible 

individual health insurance to full-time 

employees. The Departments do not 

adopt this change. A rationale for 

treating the wraparound coverage as an 

excepted benefit is that recipients will 

be able to use this limited type of 

coverage in conjunction with individual 

coverage purchased through an 

Exchange without being disqualified 

from claiming the premium tax credit. 

This may be attractive to employers as 

a means of providing some health 

coverage to employees who may not 

otherwise have been offered coverage, 

such as part-time employees or retirees. 

However, this is not intended to 

incentivize or permit employers to fail 

to offer minimum essential coverage to 

full-time employees, a population to 

whom employers have typically offered 

coverage. 

One commenter sought clarification 

that plan sponsors offering limited 

wraparound coverage may rely on a 

determination of full-time employee 

status at the time of enrollment. The 

Departments agree that employers 

offering limited wraparound coverage 

will make determinations based on the 

expected status of an employee in the 

future as a part-time employee versus 

full-time employee. Accordingly, the 

final regulations include a clarification 

that this standard is met if it is 

reasonably determined at the time of 

enrollment that the employee will on 

average work fewer than 30 hours per 

week during the plan year. Moreover, 

for purposes of administering the 

premium tax credit under section 36B of 

the Code, if it is reasonably determined 

at the time of enrollment that the 

employee will on average work fewer 

than 30 hours per week during the plan 

year and therefore the employee is 

offered limited coverage that wraps 

around eligible individual health 

insurance, but the employee later during 

the coverage period meets the definition 

of a full-time employee, the coverage 

will not fail to be excepted benefits and 

the employee will not become ineligible 

for premium tax credits for the 

remainder of the plan year solely 

because the original reasonable 

determination proves incorrect. 

Whether, to be reasonable, that 

determination would need to be 

changed for future plan years will 

depend on all the facts and 

circumstances. 

Several commenters sought 

clarification regarding the definition of 

‘‘dependent.’’ Specifically, commenters 

asked whether the term ‘‘dependent’’ 

includes ‘‘spouses’’ (as the term is 

defined under 26 CFR 54.9801–2, 29 

CFR 2590.701–2, and 45 CFR 144.103 

for purposes of chapter 100 of the Code, 

part 7 of ERISA, and title XXVII of the 

PHS Act), or whether it is limited to 

‘‘dependent children’’ (as the term is 

defined under Code section 4980H and 

its implementing regulations). These 

final regulations clarify that, for 

purposes of excepted benefits, the term 

‘‘dependent’’ is defined by reference to 

the definitions section governing the 

market reforms (that is, 26 CFR 

54.9801–2, 29 CFR 2590.701–2, and 45 

CFR 144.103) and not the employer 

shared responsibility provisions under 

Code section 4980H and its 

implementing regulations. Accordingly, 

spouses may qualify as dependents to 

the extent they are eligible for coverage 

under the terms of the limited 

wraparound coverage. Moreover, some 

commenters sought clarification as to 

whether a plan could permit enrollment 

of a spouse beneficiary without 

enrollment of an employee participant. 

While nothing in these final regulations, 

nor any other provision of ERISA, the 

Code, or the PHS Act requires plans to 

enroll spouse beneficiaries for coverage 

(other than COBRA coverage) if the 

participant does not enroll, nothing in 

these provisions prohibits plans from 

enrolling such a spouse if plans choose 

to do so.29

iii. Offer of Other Group Health Plan 

Coverage 

Third, under the 2014 proposed 

regulations, other group health plan 

coverage, not limited to excepted 

benefits, would be required to be offered 

to the individuals eligible for the 

wraparound coverage. Only individuals 

eligible for other group health plan 

coverage could be eligible for the 

wraparound coverage. 

Some commenters contended that 

plan sponsors should not be required to 

offer other group health plan coverage to 

individuals who are not full-time 

employees. This provision does not 

require employers to offer group health 

plan coverage to workers who are not 

full-time employees but it does limit the 

ability to offer the wrap-around 

coverage only to workers otherwise 

eligible for other group health plan 

coverage. That is because this provision 

is not intended to create an opportunity 

or incentive for employers to 

discontinue providing group health plan 

coverage and to encourage its employees 

to obtain coverage through the Exchange 

subsidized through the premium tax 

credit while still receiving meaningful 

employer-provided health benefits. 

Further, the same standard is applied in 

order for a health FSA to be an excepted 

benefit, and this provision in the final 

regulation is intended to allow 

employers to offer a limited benefit, 

similar to a health FSA. 

2. Limited Wraparound Coverage 

Offered in Conjunction With Multi-State 

Plan Coverage 

For limited coverage that wraps 

around Multi-State Plan coverage, four 

requirements would be required to be 

met under the 2014 proposed 

regulations. 

i. OPM Review and Approval 

The first of the four standards would 

require that the limited wraparound 


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coverage be specifically designed and 

approved by the Office of Personnel 

Management (OPM) to provide benefits 

in conjunction with coverage under a 

Multi-State Plan authorized under 

section 1334 of the Affordable Care Act. 

Several comments sought clarification 

as to whether OPM would be designing 

limited wraparound coverage, or 

whether that would more appropriately 

be the role of the plan sponsor or health 

insurance issuer. These final rules 

include a modification to clarify that 

OPM would not design limited 

wraparound coverage. Instead, OPM’s 

role would be to review and approve 

such coverage. Moreover, as indicated 

in the preamble to the 2014 proposed 

regulations, with respect to the 

maintenance of effort standard 

(discussed below), OPM’s role is to 

ensure that group health plans and 

health insurance issuers offering MultiState Plan wraparound coverage have a 

reasonable process in place for assuring 

employers meet the criteria set forth in 

these regulations for excepted benefits. 

ii. Maintenance of Effort 

The 2014 proposed regulations 

provided that the employer would have 

had to offer coverage in the plan year 

that began in 2014 that is substantially 

similar to coverage that the employer 

would need to have offered to its fulltime employees in order to not be 

subject to an assessable payment under 

the employer shared responsibility 

provisions of section 4980H(a) of the 

Code, if such provisions had been 

applicable. In addition, in the plan year 

that began in 2014, the employer would 

have had to have offered coverage to a 

substantial portion of full-time 

employees that provided ‘‘minimum 

value’’ (as defined in section 

36B(c)(2)(C)(ii) of the Code) and was 

affordable (applying the safe harbor 

rules for determining affordability set 

forth in 26 CFR 54.4980H–5(e)(2)). 

Finally, for the duration of the pilot 

program (described later in this 

preamble), the employer’s annual 

aggregate contributions for both primary 

and limited wraparound coverage must 

be substantially the same as the 

employer’s aggregate contributions for 

coverage offered to full-time employees 

in 2014. The Departments stated in the 

preamble that they were considering 

interpreting this ‘‘substantially the 

same’’ condition as a percentage (for 

example, 80 or 90 percent) and 

potentially applying it on a per-worker 

basis to allow for fluctuations in an 

employer’s workforce. 

Citing that some employers may have 

made changes to their coverage in 2014 

because Exchange coverage was first 

available in 2014, several commenters 

requested that plan sponsors be 

permitted to use either 2013 or 2014 as 

the base year for this maintenance of 

effort requirement set forth in these 

second and third requirements for 

limited coverage that wraps around 

Multi-State Plan coverage. These final 

regulations adopt this suggestion. 

Other comments stated that an 

employer’s annual aggregate 

contribution toward primary and 

limited wraparound coverage should 

include any assessable payments under 

Code section 4980H owed by the 

employer. An applicable large employer 

may become subject to an assessable 

payment if it fails to offer minimum 

essential coverage to its full-time 

employees and one or more of those 

employees obtains a premium tax credit, 

or it fails to provide a full-time 

employee minimum essential coverage 

that provides minimum value and is 

affordable for that employee and that 

employee obtains a premium tax credit. 

In neither case does the payment of an 

assessable payment provide coverage to 

the employee or otherwise assist that 

employee in obtaining coverage. Nor 

does the fact that the failure to provide 

coverage may permit the employee to 

obtain the premium tax credit mean that 

the resulting fee is contributing toward 

that employee’s health coverage. The 

final regulations, therefore, do not make 

this change. 

Some comments sought clarification 

regarding whether the employer’s 

annual aggregate contributions for both 

primary and limited wraparound 

coverage must be substantially the same 

as the employer’s aggregate 

contributions for coverage offered to 

full-time employees in 2013 or 2014. 

Some requested OPM be given 

discretion to determine whether the 

maintenance of effort standard has been 

met by each employer. Others requested 

a threshold of 60 percent in determining 

whether this standard has been met. 

Many factors, including fluctuations in 

workforce size, cost of coverage, and 

employer contributions towards other 

fringe benefits may affect employer 

contributions from year to year. The 

final regulations retain the standard set 

forth in the 2014 proposed regulations 

that the employer’s annual aggregate 

contributions for both primary and 

limited wraparound coverage must be 

substantially the same as the employer’s 

aggregate contributions for coverage 

offered to full-time employees in 2014 

(or 2013). For this purpose, the 

Departments consider this 

‘‘substantially the same’’ condition to be 

met if contributions were at least 80 

percent of contributions made in 2013 

or 2014, applied on an average, full-time 

worker basis (to allow for fluctuations in 

an employer’s workforce). OPM may 

make a finding, based on all the facts 

and circumstances, that other employer 

contribution arrangements also meet 

this standard. OPM may provide 

additional guidance (such as examples 

and safe harbors) in the future. 

As with coverage that wraps around 

eligible individual health insurance (or 

that wraps around Basic Health Plan 

coverage), commenters asked the 

Departments to clarify that any Code 

section 4980H-related requirements are 

met in instances in which the employer 

has no full-time employees. These final 

regulations adopt a parallel clarification 

for coverage that wraps around MultiState Plan coverage as for coverage that 

wraps around eligible individual health 

insurance (or that wraps around Basic 

Health Plan coverage). That is, while 

these final regulations do not permit 

new employers to provide wraparound 

coverage as an excepted benefit, these 

final regulations clarify that, in the 

event that the employer has no full-time 

employees, but the plan covers retirees 

(and their dependents), or covers parttime employees (and their dependents), 

the requirements that, in the plan year 

that began in 2013 or 2014, the 

employer would have had to have 

offered coverage to a substantial portion 

of full-time employees that provided 

minimum value and was affordable is 

met, as is the requirement that, for the 

duration of the pilot program, the 

employer’s annual aggregate 

contributions for both primary and 

limited wraparound coverage must be 

substantially the same as the employer’s 

aggregate contributions for coverage 

offered to full-time employees in 2013 

or 2014. 

For purposes of administering this 

provision with respect to limited 

wraparound coverage offered in 

conjunction with Multi-State Plan 

coverage, the Departments had proposed 

that the term ‘‘full-time employee’’ 

means a ‘‘full-time employee’’ as 

defined in 26 CFR 54.4980H–1(a)(21) 

who is not in a limited non-assessment 

period for certain employees (as defined 

in 26 CFR 54.4980H–1(a)(26)). 

Moreover, if a plan or issuer providing 

limited wraparound coverage takes 

reasonable steps to ensure that 

employers disclose necessary 

information regarding their coverage 

offered and contribution levels for 2013 

or 2014 to the plan or issuer, the plan 

or issuer may rely on reasonable 

representations by employers regarding 

this information, unless the plan or 

issuer has specific knowledge to the 

contrary. Consistent with the reporting 


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and evaluation criteria described later in 

this preamble, the Departments stated 

that OPM may verify that plans and 

issuers have reasonable mechanisms in 

place to ensure that contributing 

employers meet these standards. 

E. Reporting 

The fifth and final requirement for 

limited wraparound coverage to qualify 

as excepted benefits under the 2014 

proposed regulations is a reporting 

requirement, for group health plans and 

group health insurance issuers, as well 

as group health plan sponsors. The final 

regulations adopt the approach outlined 

in the 2014 proposed regulations. 

A self-insured group health plan, or a 

health insurance issuer offering or 

proposing to offer Multi-State Plan 

wraparound coverage, would report to 

OPM, in a form and manner specified in 

OPM guidance, information OPM 

reasonably requires to determine 

whether the plan or issuer qualifies to 

offer such coverage or complies with the 

applicable requirements of this section. 

In addition, the plan sponsor of any 

group health plan offering any type of 

limited wraparound coverage would 

report to HHS, in a form and manner 

specified in guidance, information HHS 

reasonably requires to determine 

whether the exception for limited 

wraparound coverage is allowing plan 

sponsors to provide workers with 

comparable benefits whether enrolled in 

minimum essential coverage under a 

group health plan offered by the plan 

sponsor, or enrolled in eligible 

individual health insurance, BHP 

coverage, or Multi-State Plan coverage, 

with additional limited wraparound 

coverage offered by the plan sponsor, 

without causing an erosion of coverage. 

Commenters requested that there be 

coordination of any reporting 

requirements with existing reporting 

requirements and some made specific 

suggestions regarding data elements that 

should be required for reporting. The 

Departments agree with the principle of 

non-duplication and will seek comment 

on any new reporting requirements 

through the process established by 

Paperwork Reduction Act of 1995. 

F. Pilot Program With Sunset Date 

Under the 2014 proposed regulations, 

limited wraparound coverage would be 

permitted under a pilot program for a 

limited time. Specifically, this type of 

wraparound coverage could be offered 

as excepted benefits if it is first offered 

no later than December 31, 2017, and 

ends on the later of: (1) The date that is 

three years after the date wraparound 

coverage is first offered; or (2) the date 

on which the last collective bargaining 

agreement relating to the plan 

terminates after the date wraparound 

coverage is first offered (determined 

without regard to any extension agreed 

to after the date the wraparound 

coverage is first offered). The 2014 

proposed regulations invited comments 

on this time frame for applicability, 

including whether the Departments 

should have the option to provide for an 

earlier termination date. 

Many commenters cited uncertainty 

and the lack of lead time as negatively 

impacting full utilization of the pilot 

program and requested a longer 

implementation period. The 

Departments agree that the timing for 

publication of these final rules makes 

2015 plan year implementation 

impossible or impracticable for most 

plans. Accordingly, these final rules 

specify that wraparound coverage could 

be offered as excepted benefits if the 

coverage is first offered no earlier than 

January 1, 2016 and no later than 

December 31, 2018. The end date is 

unchanged from the proposal, that is the 

later of: (1) The date that is three years 

after the date wraparound coverage is 

first offered; or (2) the date on which the 

last collective bargaining agreement 

relating to the plan terminates after the 

date wraparound coverage is first 

offered (determined without regard to 

any extension agreed to after the date 

the wraparound coverage is first 

offered). 

III. Economic Impact and Paperwork 

Burden 

A. Summary 

As discussed in detail above, these 

regulations amend the definition of 

‘‘limited excepted benefits’’ in the group 

market to provide plan sponsors with 

two options to offer limited wraparound 

coverage to certain individuals. Under 

the first option, a plan sponsor could 

offer limited benefits provided through 

a group health plan that wraps around 

eligible individual health insurance to 

employees who are not full-time 

employees (and their dependents), or 

who are retirees (and their dependents). 

For this purpose, full-time employees 

are employees who are reasonably 

expected to work at least an average of 

30 hours per week. Under the second 

option, the limited wraparound 

coverage that satisfies the requirements 

outlined in the regulations must be 

approved by OPM and be offered in 

conjunction with Multi-State Plan 

coverage authorized under section 1334 

of the Affordable Care Act. Under the 

first option, the limited benefits would 

also be permitted to wrap around the 

Basic Health Program authorized under 

section 1331 of the Affordable Care Act. 

B. Executive Orders 12866 and 13563— 

Departments of Labor and HHS 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, and public health and 

safety effects; distributive impacts; and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. 

Section 3(f) of Executive Order 12866 

defines a ‘‘significant regulatory action’’ 

as an action that is likely to result in a 

regulation: (1) Having an annual effect 

on the economy of $100 million or more 

in any one year, or adversely and 

materially affecting a sector of the 

economy, productivity, competition, 

jobs, the environment, public health or 

safety, or state, local, or tribal 

governments or communities (also 

referred to as ‘‘economically 

significant’’); (2) creating a serious 

inconsistency or otherwise interfering 

with an action taken or planned by 

another agency; (3) materially altering 

the budgetary impacts of entitlement 

grants, user fees, or loan programs or the 

rights and obligations of recipients 

thereof; or (4) raising novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. OMB has determined that the 

action is significant within the meaning 

of section 3(f)(4) of Executive Order 

12866, and the Departments accordingly 

provide the following assessment of its 

potential benefits and costs. 

The Departments recognize that many 

plan sponsors provide comprehensive 

health benefits to their workers. One 

objective of the Affordable Care Act is 

to allow individuals with 

comprehensive health insurance plans 

to maintain their current level of 

benefits. Some employers are interested 

in offering wraparound coverage to 

employees who are enrolled in a MultiState Plan authorized under section 

1334 of the Affordable Care Act or to 

part-time employees. These regulations 

provide two options to employers that 

clarify the circumstances under which 

plan sponsors can provide to their 

employees such limited wraparound 

coverage that qualifies as an excepted 

benefit. 


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30As with other group health coverage, employer 

contributions to the limited wraparound coverage 

would be excluded from employee income for tax 

purposes. Similar to the cost of the proposal, the 

budget implications of adding limited wraparound 

coverage as a form of excepted benefits depends on 

the number of employers that elect either option 

and the number of employees that in turn receive 

it. 

31The substantial level was included to help 

minimize the implications for the primary plan’s 

risk pool by preventing a large number of low-wage 

workers from leaving the primary plan for Exchange 

coverage. 

The cost (and Federal budget 

impact 30) of these final regulations is 

difficult to quantify. The Departments 

solicited comments in the regulatory 

impact analysis section of the preamble 

to the 2014 proposed regulations. 

Comments were invited generally and 

on specific questions, including: To 

what degree, if any, might this 

regulation increase employers’ 

propensity to provide health insurance? 

To what extent, if any, this proposed 

regulation could affect plan sponsors’ 

decision making? Are there any 

particular sectors of the economy in 

which employers will be more or less 

inclined to pursue wraparound coverage 

programs? 

Comments were also invited on the 

effects of the proposal and the 

Departments requested detailed data 

that would inform the following 

questions: What will be the impact of 

limiting the cost of the wraparound 

coverage to $2,500 per employee (and 

any covered dependents)? How many 

employers offer coverage that provides 

minimum value and is affordable for a 

substantial portion (under the first 

option) or 95 percent (under the second 

option) of employees who are eligible 

for coverage? To what extent would 

premiums for comprehensive health 

coverage change in the presence and 

absence of this rule? 

No specific data were received in 

response to this solicitation, although 

several commented that limited 

conditions under which wraparound 

coverage could be offered were overly 

restrictive and made it of limited use. 

Others commented that the uncertainty 

of the life span of a time-limited pilot 

program would minimize uptake of the 

offering of limited wraparound 

coverage. 

These final regulations generally 

implement the 2014 proposed 

regulations with marginal change, as 

discussed above. Both options are 

designed so that wraparound coverage 

could not replace employer-sponsored 

primary group coverage. Under the 

individual health insurance wraparound 

option, the employer also must offer 

other group health coverage that is not 

limited to excepted benefits and 

provides minimum value to the class of 

participants offered the wraparound 

coverage by reason of their employment. 

Only individuals who are not full-time 

employees and who are eligible for 

other group health plan coverage may be 

eligible for the wraparound coverage. 

Also, the employer coverage must 

substantially satisfy the employer 

shared responsibility provisions of Code 

section 4980H(a), and the coverage 

would have to be affordable for at least 

95 percent of full-time employees. 

Under the Multi-State Plan 

wraparound option, the employer 

would have to offer coverage in the plan 

year beginning in 2013 or 2014 that 

would have substantially satisfied the 

employer shared responsibility 

provisions of Code section 4980H(a) if 

the provision had been applicable, 

provided minimum value, and been 

affordable for a substantial portion of its 

full-time employees.31 The employer’s 

annual contributions for both its 

primary and wraparound coverage must 

be substantial. 

The final regulations permit limited 

wraparound coverage to be excepted 

benefits if initially offered between 

January 1, 2016 and December 31, 2018, 

and continuing for the longer of three 

years or the date on which the last 

collective bargaining agreement relating 

to the group health plan terminates. In 

addition, the maximum benefit cannot 

exceed the greater of the annual health 

FSA contribution limit ($2,550 for 

2015), indexed; or 15 percent of the 

firm’s primary plan cost. In the 2014 

proposed regulations the maximum 

benefit was the annual health FSA 

contribution limits ($2,550 for 2015), 

indexed. 

As with the 2014 proposed 

regulations, the decision to offer the 

limited wraparound coverage remains 

optional. There is greater administrative 

complexity associated with the 

wraparound coverage than primary 

coverage alone or primary coverage plus 

a health FSA which offers similar 

benefits. Given a choice, some plan 

sponsors may choose to increase the 

affordability of their primary coverage 

rather than offer limited wraparound 

coverage. Some plan sponsors may not 

have that choice: The employers may 

not be in a financial position to make 

their primary health plans affordable to 

more workers, let alone contribute to 

wraparound coverage. Employers may 

also continue to simply not provide 

employees with affordable, minimum 

value coverage, allowing their workers 

to purchase coverage and potentially 

qualify for premium tax credits through 

an Exchange with no additional 

wraparound benefit, and these 

employers would continue to make any 

employer shared responsibility 

payments as applicable, resulting in no 

additional cost to the employer or the 

Federal government. 

The option to offer limited 

wraparound coverage would not 

encumber any currently existing means 

by which employers can provide 

comprehensive health insurance 

coverage to their employees in 

compliance with the Affordable Care 

Act. Rather, it would clarify two 

additional, alternative means of doing 

so. 

For the foregoing reasons, the 

Departments have reached the 

conclusion that the impact of the 

benefits, costs, and transfers will be 

limited. The Departments do not expect 

many plans to offer limited wraparound 

coverage, and will monitor usage and 

impact during the pilot program through 

reporting, as discussed above. 

C. Paperwork Reduction Act— 

Department of Labor and Department of 

the Treasury 

These final regulations are not subject 

to the requirements of the Paperwork 

Reduction Act of 1995 (PRA 95) (44 

U.S.C. 3501 et seq.), because it does not 

contain a collection of information as 

defined in 44 U.S.C. 3502(3). 

D. Paperwork Reduction Act— 

Department of HHS 

The final rule is not subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (PRA 95) (44 

U.S.C. 3501 et seq.), because it does not 

contain a collection of information as 

defined in 44 U.S.C. 3502(3). An 

analysis under the PRA will be 

conducted in the future for any future 

guidance establishing a collection of 

information related to the rule. 

E. Regulatory Flexibility Act— 

Departments of Labor and HHS 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) (RFA) imposes 

certain requirements with respect to 

Federal rules that are subject to the 

notice and comment requirements of 

section 553(b) of the Administrative 

Procedure Act (5 U.S.C. 551 et seq.) and 

that are likely to have a significant 

economic impact on a substantial 

number of small entities. Unless an 

agency certifies that a proposed rule is 

not likely to have a significant economic 

impact on a substantial number of small 

entities, section 603 of RFA requires 

that the agency present an initial 

regulatory flexibility analysis at the time 

of the publication of the notice of 


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Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 14003 

proposed rulemaking describing the 

impact of the rule on small entities and 

seeking public comment on such 

impact. Small entities include small 

businesses, organizations and 

governmental jurisdictions. 

For purposes of the RFA, the 

Departments continue to consider a 

‘‘small entity’’ to be an employee benefit 

plan with fewer than 100 participants. 

The basis for this definition is found in 

section 104(a)(2) of the act, which 

permits the Secretary of Labor to 

prescribe simplified annual reports for 

pension plans that cover fewer than 100 

participants. Pursuant to the authority 

of section 104(a)(3), the Department has 

previously issued at 29 CFR 2520.104– 

20, 2520.104–21, 2520.104–41, 

2520.104–46 and 2520.104b–10 certain 

simplified reporting provisions and 

limited exemptions from reporting and 

disclosure requirements for small plans, 

including unfunded or insured welfare 

plans covering fewer than 100 

participants and satisfying certain other 

requirements. 

Further, while some large employers 

may have small plans, in general small 

employers maintain most small plans. 

Thus, the Departments believe that 

assessing the impact of these final 

regulations on small plans is an 

appropriate substitute for evaluating the 

effect on small entities. The definition 

of small entity considered appropriate 

for this purpose differs, however, from 

a definition of small business that is 

based on size standards promulgated by 

the Small Business Administration (13 

CFR 121.201) pursuant to the Small 

Business Act (15 U.S.C. 631 et seq.). The 

Departments requested comment on the 

appropriateness of the size standard at 

the proposed rule phase and received no 

responses. 

Because these final regulations 

impose no additional costs on 

employers or plans, the Departments 

believe that they do not have a 

significant economic impact on a 

substantial number of small entities. 

Accordingly, pursuant to section 605(b) 

of the RFA, the Departments hereby 

certify that these final regulations will 

not have a significant economic impact 

on a substantial number of small 

entities. 

F. Special Analyses—Department of the 

Treasury 

For purposes of the Department of the 

Treasury it has been determined that 

this final rule is not a significant 

regulatory action as defined in 

Executive Order 12866, as 

supplemented by Executive Order 

13563. Therefore, a regulatory 

assessment is not required. It has also 

been determined that section 553(b) of 

the Administrative Procedure Act (5 

U.S.C. chapter 5) does not apply to these 

final regulations, and, because these 

final regulations do not impose a 

collection of information on small 

entities, an analysis under the RFA is 

not required. Pursuant to section 7805(f) 

of the Code, the notice of proposed 

rulemaking preceding these final 

regulations was submitted to the Small 

Business Administration for comment 

on its impact on small business. 

G. Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (2 U.S.C. 

1501 et seq.), as well as Executive Order 

12875, these final regulations do not 

include any federal mandate that may 

result in expenditures by State, local, or 

tribal governments, or the private sector, 

which may impose an annual burden of 

$100 million adjusted for inflation since 

1995. 

H. Federalism 

Executive Order 13132 outlines 

fundamental principles of federalism. It 

requires adherence to specific criteria by 

federal agencies in formulating and 

implementing policies that have 

‘‘substantial direct effects’’ on the states, 

the relationship between the national 

government and states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Federal agencies 

promulgating regulations that have 

these federalism implications must 

consult with state and local officials, 

and describe the extent of their 

consultation and the nature of the 

concerns of state and local officials in 

the preamble to the final regulation. 

In the Departments’ view, the final 

regulations, by clarifying policy 

regarding certain expected benefits 

options that can be designed by 

employers to support their employees, 

will provide more certainty to 

employers and others in the regulated 

community as well as states and 

political subdivisions regarding the 

treatment of such arrangements under 

ERISA. Accordingly, the Departments 

will continue to affirmatively engage in 

outreach with officials of state and 

political subdivisions regarding 

excepted benefits and seek their input 

on any federalism implications that they 

believe may be presented. 

I. Congressional Review Act 

These final regulations are subject to 

the Congressional Review Act 

provisions of the Small Business 

Regulatory Enforcement Fairness Act of 

1996 (5 U.S.C. 801 et seq.), which 

specifies that, before a rule can take 

effect, the Federal agency promulgating 

the rule shall submit to each House of 

the Congress and to the Comptroller 

General a report containing a copy of 

the rule along with other specified 

information. These final regulations are 

being transmitted to Congress and the 

Comptroller General for review. 

IV. Statutory Authority 

The Department of the Treasury 

regulations are adopted pursuant to the 

authority contained in sections 7805 

and 9833 of the Code. 

The Department of Labor regulations 

are adopted pursuant to the authority 

contained in 29 U.S.C. 1027, 1059, 1135, 

1161–1168, 1169, 1181–1183, 1181 note, 

1185, 1185a, 1185b, 1191, 1191a, 1191b, 

and 1191c; sec. 101(g), Public Law 104– 

191, 110 Stat. 1936; sec. 401(b), Public 

Law 105–200, 112 Stat. 645 (42 U.S.C. 

651 note); sec. 512(d), Public Law 110– 

343, 122 Stat. 3765; Public Law 110– 

460, 122 Stat. 5123; Secretary of Labor’s 

Order 1–2011, 77 FR 1088 (January 9, 

2012). 

The Department of Health and Human 

Services regulations are adopted 

pursuant to the authority contained in 

sections 2701 through 2763, 2791, and 

2792 of the PHS Act (42 U.S.C. 300gg 

through 300gg–63, 300gg–91, and 

300gg–92), as amended. 

List of Subjects 

26 CFR Part 54 

Excise taxes, Health care, Health 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 2590 

Continuation coverage, Disclosure, 

Employee benefit plans, Group health 

plans, Health care, Health insurance, 

Medical child support, Reporting and 

recordkeeping requirements. 

45 CFR Part 146 

Health care, Health insurance, 

Reporting and recordkeeping 

requirements, and State regulation of 

health insurance. 

John M. Dalrymple, 

Deputy Commissioner for Services and 

Enforcement, Internal Revenue Service. 

Approved: March 11, 2015. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

Signed this 11th day of March, 2015. 


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14004 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 

Phyllis C. Borzi, 

Assistant Secretary, Employee Benefits 

Security Administration, Department of 

Labor. 

Dated: March 11, 2015. 

Andrew M. Slavitt, 

Acting Administrator, Centers for Medicare 

& Medicaid Services. 

Dated: March 11, 2015. 

Sylvia Burwell, 

Secretary, Department of Health and Human 

Services 

Department of the Treasury 

Internal Revenue Service 

26 CFR Chapter I 

Accordingly, 26 CFR part 54 is 

amended as follows: 

PART 54—PENSION EXCISE TAXES 

■ Paragraph 1. The authority citation 

for part 54 continues to read in part as 

follows: 

Authority: Authority: 26 U.S.C. 7805. 

* * * 

Section 54.9831–1 also issued under 26 

U.S.C. 9833; * * * 

■ Par 2. Section 54.9831–1 is amended 

by adding paragraph (c)(3)(vii) to read as 

follows: 

§ 54.9831–1 Special rules relating to group 

health plans. 

* * * * * 

(c) * * * 

(3) * * * 

(vii) Limited wraparound coverage. 

Limited benefits provided through a 

group health plan that wrap around 

eligible individual health insurance (or 

Basic Health Plan coverage described in 

section 1331 of the Patient Protection 

and Affordable Care Act); or that wrap 

around coverage under a Multi-State 

Plan described in section 1334 of the 

Patient Protection and Affordable Care 

Act, collectively referred to as ‘‘limited 

wraparound coverage,’’ are excepted 

benefits if all of the following 

conditions are satisfied. For this 

purpose, eligible individual health 

insurance is individual health insurance 

coverage that is not a grandfathered 

health plan (as described in section 

1251 of the Patient Protection and 

Affordable Care Act and 29 CFR 

2590.715–1251), not a transitional 

individual health insurance plan (as 

described in the March 5, 2014 

Insurance Standards Bulletin Series— 

Extension of Transitional Policy through 

October 1, 2016), and does not consist 

solely of excepted benefits (as defined 

in paragraph (c) of this section). 

(A) Covers additional benefits. The 

limited wraparound coverage provides 

meaningful benefits beyond coverage of 

cost sharing under either the eligible 

individual health insurance, Basic 

Health Program coverage, or Multi-State 

Plan coverage. The limited wraparound 

coverage must not provide benefits only 

under a coordination-of-benefits 

provision and must not consist of an 

account-based reimbursement 

arrangement. 

(B) Limited in amount. The annual 

cost of coverage per employee (and any 

covered dependents, as defined in 

§ 54.9801–2) under the limited 

wraparound coverage does not exceed 

the greater of the amount determined 

under either paragraph (c)(3)(vii)(B)(1) 

or (2) of this section. Making a 

determination regarding the annual cost 

of coverage per employee must occur on 

an aggregate basis relying on sound 

actuarial principles. 

(1) The maximum permitted annual 

salary reduction contribution toward 

health flexible spending arrangements, 

indexed in the manner prescribed under 

section 125(i)(2). For this purpose, the 

cost of coverage under the limited 

wraparound includes both employer 

and employee contributions towards 

coverage and is determined in the same 

manner as the applicable premium is 

calculated under a COBRA continuation 

provision. 

(2) Fifteen percent of the cost of 

coverage under the primary plan. For 

this purpose, the cost of coverage under 

the primary plan and under the limited 

wraparound coverage includes both 

employer and employee contributions 

towards the coverage and each is 

determined in the same manner as the 

applicable premium is calculated under 

a COBRA continuation provision. 

(C) Nondiscrimination. All of the 

conditions of this paragraph 

(c)(3)(vii)(C) are satisfied. 

(1) No preexisting condition 

exclusion. The limited wraparound 

coverage does not impose any 

preexisting condition exclusion, 

consistent with the requirements of 

section 2704 of the PHS Act 

(incorporated by reference into section 

9815) and 29 CFR 2590.715–2704. 

(2) No discrimination based on health 

status. The limited wraparound 

coverage does not discriminate against 

individuals in eligibility, benefits, or 

premiums based on any health factor of 

an individual (or any dependent of the 

individual, as defined in § 54.9801–2), 

consistent with the requirements of 

section 9802 and section 2705 of the 

PHS Act (incorporated by reference into 

section 9815). 

(3) No discrimination in favor of 

highly compensated individuals. 

Neither the limited wraparound 

coverage, nor any other group health 

plan coverage offered by the plan 

sponsor, fails to comply with section 

2716 of the PHS Act (incorporated by 

reference into section 9815) or fails to be 

excludible from income for any 

individual due to the application of 

section 105(h) (as applicable). 

(D) Plan eligibility requirements. 

Individuals eligible for the wraparound 

coverage are not enrolled in excepted 

benefit coverage under paragraph 

(c)(3)(v) of this section (relating to 

health FSAs). In addition, the 

conditions set forth in either paragraph 

(c)(3)(vii)(D)(1) or (2) of this section are 

met. 

(1) Limited wraparound coverage that 

wraps around eligible individual 

insurance for persons who are not fulltime employees. Coverage that wraps 

around eligible individual health 

insurance (or that wraps around Basic 

Health Plan coverage) must satisfy all of 

the conditions of this paragraph 

(c)(3)(vii)(D)(1). 

(i) For each year for which limited 

wraparound coverage is offered, the 

employer that is the sponsor of the plan 

offering limited wraparound coverage, 

or the employer participating in a plan 

offering limited wraparound coverage, 

offers to its full-time employees 

coverage that is substantially similar to 

coverage that the employer would need 

to offer to its full-time employees in 

order not to be subject to a potential 

assessable payment under the employer 

shared responsibility provisions of 

section 4980H(a), if such provisions 

were applicable; provides minimum 

value (as defined in section 

36B(c)(2)(C)(ii)); and is reasonably 

expected to be affordable (applying the 

safe harbor rules for determining 

affordability set forth in § 54.4980H– 

5(e)(2)). If a plan or issuer providing 

limited wraparound coverage takes 

reasonable steps to ensure that 

employers disclose to the plan or issuer 

necessary information regarding their 

coverage offered and affordability 

information, the plan or issuer is 

permitted to rely on reasonable 

representations by employers regarding 

this information, unless the plan or 

issuer has specific knowledge to the 

contrary. In the event that the employer 

that is the sponsor of the plan offering 


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Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 14005 

wraparound coverage, or the employer 

participating in a plan offering 

wraparound coverage, has no full-time 

employees for any plan year limited 

wraparound coverage is offered, the 

requirement of this paragraph 

(c)(3)(vii)(D)(1)(i) is considered satisfied. 

(ii) Eligibility for the limited 

wraparound coverage is limited to 

employees who are reasonably 

determined at the time of enrollment to 

not be full-time employees (and their 

dependents, as defined in § 54.9801–2), 

or who are retirees (and their 

dependents, as defined in § 54.9801–2). 

For this purpose, full-time employees 

are employees who are reasonably 

expected to work at least an average of 

30 hours per week. 

(iii) Other group health plan coverage, 

not limited to excepted benefits, is 

offered to the individuals eligible for the 

limited wraparound coverage. Only 

individuals eligible for the other group 

health plan coverage are eligible for the 

limited wraparound coverage. 

(2) Limited coverage that wraps 

around Multi-State Plan coverage. 

Coverage that wraps around Multi-State 

Plan coverage must satisfy all of the 

conditions of this paragraph 

(c)(3)(vii)(D)(2). For this purpose, the 

term ‘‘full-time employee’’ means a 

‘‘full-time employee’’ as defined in 

§ 54.4980H–1(a)(21) who is not in a 

limited non-assessment period for 

certain employees (as defined in 

§ 54.4980H–1(a)(26)). Moreover, if a 

plan or issuer providing limited 

wraparound coverage takes reasonable 

steps to ensure that employers disclose 

to the plan or issuer necessary 

information regarding their coverage 

offered and contribution levels for 2013 

or 2014 (as applicable), and for any year 

in which limited wraparound coverage 

is offered, the plan or issuer is permitted 

to rely on reasonable representations by 

employers regarding this information, 

unless the plan or issuer has specific 

knowledge to the contrary. Consistent 

with the reporting and evaluation 

criteria of paragraph (c)(3)(vii)(E) of this 

section, the Office of Personnel 

Management may verify that plans and 

issuers have reasonable mechanisms in 

place to ensure that contributing 

employers meet these standards. 

(i) The limited wraparound coverage 

is reviewed and approved by the Office 

of Personnel Management, consistent 

with the reporting and evaluation 

criteria of paragraph (c)(3)(vii)(E) of this 

section, to provide benefits in 

conjunction with coverage under a 

Multi-State Plan authorized under 

section 1334 of the Patient Protection 

and Affordable Care Act. The Office of 

Personnel Management may revoke 

approval if it determines that continued 

approval is inconsistent with the 

reporting and evaluation criteria of 

paragraph (c)(3)(vii)(E) of this section. 

(ii) The employer offered coverage in 

the plan year that began in either 2013 

or 2014 that is substantially similar to 

coverage that the employer would need 

to have offered to its full-time 

employees in order to not be subject to 

an assessable payment under the 

employer shared responsibility 

provisions of section 4980H(a), if such 

provisions had been applicable. In the 

event that a plan that offered coverage 

in 2013 or 2014 has no full-time 

employees for any plan year limited 

wraparound coverage is offered, the 

requirement of this paragraph 

(c)(3)(vii)(D)(2)(ii) is considered 

satisfied. 

(iii) In the plan year that began in 

either 2013 or 2014, the employer 

offered coverage to a substantial portion 

of full-time employees that provided 

minimum value (as defined in section 

36B(c)(2)(C)(ii)) and was affordable 

(applying the safe harbor rules for 

determining affordability set forth in 

§ 54.4980H–5(e)(2)). In the event that 

the plan that offered coverage in 2013 or 

2014 has no full-time employees for any 

plan year limited wraparound coverage 

is offered, the requirement of this 

paragraph (c)(3)(vii)(D)(2)(iii) is 

considered satisfied. 

(iv) For the duration of the pilot 

program, as described in paragraph 

(c)(3)(vii)(F) of this section, the 

employer’s annual aggregate 

contributions for both primary and 

limited wraparound coverage are 

substantially the same as the employer’s 

total contributions for coverage offered 

to full-time employees in 2013 or 2014. 

(E) Reporting—(1) Reporting by group 

health plans and group health 

insurance issuers. A self-insured group 

health plan, or a health insurance 

issuer, offering or proposing to offer 

limited wraparound coverage in 

connection with Multi-State Plan 

coverage pursuant to paragraph 

(c)(3)(vii)(D)(2) of this section reports to 

the Office of Personnel Management 

(OPM), in a form and manner specified 

in guidance, information OPM 

reasonably requires to determine 

whether the plan or issuer qualifies to 

offer such coverage or complies with the 

applicable requirements of this section. 

(2) Reporting by group health plan 

sponsors. The plan sponsor of a group 

health plan offering limited wraparound 

coverage under paragraph (c)(3)(vii) of 

this section, must report to the 

Department of Health and Human 

Services (HHS), in a form and manner 

specified in guidance, information HHS 

reasonably requires. 

(F) Pilot program with sunset. The 

provisions of paragraph (c)(3)(vii) of this 

section apply to limited wraparound 

coverage that is first offered no earlier 

than January 1, 2016 and no later than 

December 31, 2018 and that ends no 

later than on the later of: 

(1) The date that is three years after 

the date limited wraparound coverage is 

first offered; or 

(2) The date on which the last 

collective bargaining agreement relating 

to the plan terminates after the date 

limited wraparound coverage is first 

offered (determined without regard to 

any extension agreed to after the date 

limited wraparound coverage is first 

offered). 

* * * * * 

Department of Labor 

Employee Benefits Security 

Administration 

29 CFR Chapter XXV 

For the reasons stated in the 

preamble, the Department of Labor 

amends 29 CFR part 2590 as follows: 

PART 2590—RULES AND 

REGULATIONS FOR GROUP HEALTH 

PLANS 

■ 3. The authority citation for Part 2590 

continues to read as follows: 

Authority: 29 U.S.C. 1027, 1059, 1135, 

1161–1168, 1169, 1181–1183, 1181 note, 

1185, 1185a, 1185b, 1185c, 1185d, 1191, 

1191a, 1191b, and 1191c; sec. 101(g), Pub. L. 

104–191, 110 Stat. 1936; sec. 401(b), Pub. L. 

105–200, 112 Stat. 645 (42 U.S.C. 651 note); 

sec. 512(d), Pub. L. 110–343, 122 Stat. 3765; 

Pub. L. 110–460, 122 Stat. 5123; Secretary of 

Labor’s Order 1–2011, 77 FR 1088 (January 

9, 2012). 

■ 4. Section 2590.732 is amended by 

adding paragraph (c)(3)(vii) to read as 

follows: 

§ 2590.732 Special rules relating to group 

health plans. 

* * * * * 

(c) * * * 

(3) * * * 

(vii) Limited wraparound coverage. 

Limited benefits provided through a 

group health plan that wrap around 

eligible individual health insurance (or 

Basic Health Plan coverage described in 

section 1331 of the Patient Protection 

and Affordable Care Act); or that wrap 

around coverage under a Multi-State 

Plan described in section 1334 of the 

Patient Protection and Affordable Care 

Act, collectively referred to as ‘‘limited 

wraparound coverage,’’ are excepted 

benefits if all of the following 

conditions are satisfied. For this 


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14006 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 

purpose, eligible individual health 

insurance is individual health insurance 

coverage that is not a grandfathered 

health plan (as described in section 

1251 of the Patient Protection and 

Affordable Care Act and § 2590.715– 

1251), not a transitional individual 

health insurance plan (as described in 

the March 5, 2014 Insurance Standards 

Bulletin Series—Extension of 

Transitional Policy through October 1, 

2016), and does not consist solely of 

excepted benefits (as defined in 

paragraph (c) of this section). 

(A) Covers additional benefits. The 

limited wraparound coverage provides 

meaningful benefits beyond coverage of 

cost sharing under either the eligible 

individual health insurance, Basic 

Health Program coverage, or Multi-State 

Plan coverage. The limited wraparound 

coverage must not provide benefits only 

under a coordination-of-benefits 

provision and must not consist of an 

account-based reimbursement 

arrangement. 

(B) Limited in amount. The annual 

cost of coverage per employee (and any 

covered dependents, as defined in 

§ 2590.701–2) under the limited 

wraparound coverage does not exceed 

the greater of the amount determined 

under either paragraph (c)(3)(vii)(B)(1) 

or (2) of this section. Making a 

determination regarding the annual cost 

of coverage per employee must occur on 

an aggregate basis relying on sound 

actuarial principles. 

(1) The maximum permitted annual 

salary reduction contribution toward 

health flexible spending arrangements, 

indexed in the manner prescribed under 

section 125(i)(2) of the Code. For this 

purpose, the cost of coverage under the 

limited wraparound includes both 

employer and employee contributions 

towards coverage and is determined in 

the same manner as the applicable 

premium is calculated under a COBRA 

continuation provision. 

(2) Fifteen percent of the cost of 

coverage under the primary plan. For 

this purpose, the cost of coverage under 

the primary plan and under the limited 

wraparound coverage includes both 

employer and employee contributions 

towards the coverage and each is 

determined in the same manner as the 

applicable premium is calculated under 

a COBRA continuation provision. 

(C) Nondiscrimination. All of the 

conditions of this paragraph 

(c)(3)(vii)(C) are satisfied. 

(1) No preexisting condition 

exclusion. The limited wraparound 

coverage does not impose any 

preexisting condition exclusion, 

consistent with the requirements of 

section 2704 of the PHS Act 

(incorporated by reference into section 

715 of ERISA) and § 2590.715–2704. 

(2) No discrimination based on health 

status. The limited wraparound 

coverage does not discriminate against 

individuals in eligibility, benefits, or 

premiums based on any health factor of 

an individual (or any dependent of the 

individual, as defined in § 2590.701–2), 

consistent with the requirements of 

section 702 of ERISA and section 2705 

of the PHS Act (incorporated by 

reference into section 715 of ERISA). 

(3) No discrimination in favor of 

highly compensated individuals. 

Neither the limited wraparound 

coverage, nor any other group health 

plan coverage offered by the plan 

sponsor, fails to comply with section 

2716 of the PHS Act (incorporated by 

reference into section 715 of ERISA) or 

fails to be excludible from income for 

any individual due to the application of 

section 105(h) of the Code (as 

applicable). 

(D) Plan eligibility requirements. 

Individuals eligible for the wraparound 

coverage are not enrolled in excepted 

benefit coverage under paragraph 

(c)(3)(v) of this section (relating to 

health FSAs). In addition, the 

conditions set forth in either paragraph 

(c)(3)(vii)(D)(1) or (2) of this section are 

met. 

(1) Limited wraparound coverage that 

wraps around eligible individual 

insurance for persons who are not fulltime employees. Coverage that wraps 

around eligible individual health 

insurance (or that wraps around Basic 

Health Plan coverage) must satisfy all of 

the conditions of this paragraph 

(c)(3)(vii)(D)(1). 

(i) For each year for which limited 

wraparound coverage is offered, the 

employer that is the sponsor of the plan 

offering limited wraparound coverage, 

or the employer participating in a plan 

offering limited wraparound coverage, 

offers to its full-time employees 

coverage that is substantially similar to 

coverage that the employer would need 

to offer to its full-time employees in 

order not to be subject to a potential 

assessable payment under the employer 

shared responsibility provisions of 

section 4980H(a) of the Code, if such 

provisions were applicable; provides 

minimum value (as defined in section 

36B(c)(2)(C)(ii) of the Code); and is 

reasonably expected to be affordable 

(applying the safe harbor rules for 

determining affordability set forth in 26 

CFR 54.4980H–5(e)(2)). If a plan or 

issuer providing limited wraparound 

coverage takes reasonable steps to 

ensure that employers disclose to the 

plan or issuer necessary information 

regarding their coverage offered and 

affordability information, the plan or 

issuer is permitted to rely on reasonable 

representations by employers regarding 

this information, unless the plan or 

issuer has specific knowledge to the 

contrary. In the event that the employer 

that is the sponsor of the plan offering 

wraparound coverage, or the employer 

participating in a plan offering 

wraparound coverage, has no full-time 

employees for any plan year limited 

wraparound coverage is offered, the 

requirement of this paragraph 

(c)(3)(vii)(D)(1)(i) is considered satisfied. 

(ii) Eligibility for the limited 

wraparound coverage is limited to 

employees who are reasonably 

determined at the time of enrollment to 

not be full-time employees (and their 

dependents, as defined in § 2590.701– 

2), or who are retirees (and their 

dependents, as defined in § 2590.701– 

2). For this purpose, full-time 

employees are employees who are 

reasonably expected to work at least an 

average of 30 hours per week. 

(iii) Other group health plan coverage, 

not limited to excepted benefits, is 

offered to the individuals eligible for the 

limited wraparound coverage. Only 

individuals eligible for the other group 

health plan coverage are eligible for the 

limited wraparound coverage. 

(2) Limited coverage that wraps 

around Multi-State Plan coverage. 

Coverage that wraps around Multi-State 

Plan coverage must satisfy all of the 

conditions of this paragraph 

(c)(3)(vii)(D)(2). For this purpose, the 

term ‘‘full-time employee’’ means a 

‘‘full-time employee’’ as defined in 26 

CFR 54.4980H–1(a)(21) who is not in a 

limited non-assessment period for 

certain employees (as defined in 26 CFR 

54.4980H–1(a)(26)). Moreover, if a plan 

or issuer providing limited wraparound 

coverage takes reasonable steps to 

ensure that employers disclose to the 

plan or issuer necessary information 

regarding their coverage offered and 

contribution levels for 2013 or 2014 (as 

applicable), and for any year in which 

limited wraparound coverage is offered, 

the plan or issuer is permitted to rely on 

reasonable representations by employers 

regarding this information, unless the 

plan or issuer has specific knowledge to 

the contrary. Consistent with the 

reporting and evaluation criteria of 

paragraph (c)(3)(vii)(E) of this section, 

the Office of Personnel Management 

may verify that plans and issuers have 

reasonable mechanisms in place to 

ensure that contributing employers meet 

these standards. 

(i) The limited wraparound coverage 

is reviewed and approved by the Office 

of Personnel Management, consistent 

with the reporting and evaluation 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 14007 

criteria of paragraph (c)(3)(vii)(E) of this 

section, to provide benefits in 

conjunction with coverage under a 

Multi-State Plan authorized under 

section 1334 of the Patient Protection 

and Affordable Care Act. The Office of 

Personnel Management may revoke 

approval if it determines that continued 

approval is inconsistent with the 

reporting and evaluation criteria of 

paragraph (c)(3)(vii)(E) of this section. 

(ii) The employer offered coverage in 

the plan year that began in either 2013 

or 2014 that is substantially similar to 

coverage that the employer would need 

to have offered to its full-time 

employees in order to not be subject to 

an assessable payment under the 

employer shared responsibility 

provisions of section 4980H(a) of the 

Code, if such provisions had been 

applicable. In the event that a plan that 

offered coverage in 2013 or 2014 has no 

full-time employees for any plan year 

limited wraparound coverage is offered, 

the requirement of this paragraph 

(c)(3)(vii)(D)(2)(ii) is considered 

satisfied. 

(iii) In the plan year that began in 

either 2013 or 2014, the employer 

offered coverage to a substantial portion 

of full-time employees that provided 

minimum value (as defined in section 

36B(c)(2)(C)(ii) of the Code) and was 

affordable (applying the safe harbor 

rules for determining affordability set 

forth in 26 CFR 54.4980H–5(e)(2)). In 

the event that the plan that offered 

coverage in 2013 or 2014 has no fulltime employees for any plan year 

limited wraparound coverage is offered, 

the requirement of this paragraph 

(c)(3)(vii)(D)(2)(iii) is considered 

satisfied. 

(iv) For the duration of the pilot 

program, as described in paragraph 

(c)(3)(vii)(F) of this section, the 

employer’s annual aggregate 

contributions for both primary and 

limited wraparound coverage are 

substantially the same as the employer’s 

total contributions for coverage offered 

to full-time employees in 2013 or 2014. 

(E) Reporting—(1) Reporting by group 

health plans and group health 

insurance issuers. A self-insured group 

health plan, or a health insurance 

issuer, offering or proposing to offer 

limited wraparound coverage in 

connection with Multi-State Plan 

coverage pursuant to paragraph 

(c)(3)(vii)(D)(2) of this section reports to 

the Office of Personnel Management 

(OPM), in a form and manner specified 

in guidance, information OPM 

reasonably requires to determine 

whether the plan or issuer qualifies to 

offer such coverage or complies with the 

applicable requirements of this section. 

(2) Reporting by group health plan 

sponsors. The plan sponsor of a group 

health plan offering limited wraparound 

coverage under paragraph (c)(3)(vii) of 

this section, must report to the 

Department of Health and Human 

Services (HHS), in a form and manner 

specified in guidance, information HHS 

reasonably requires. 

(F) Pilot program with sunset—The 

provisions of paragraph (c)(3)(vii) of this 

section apply to limited wraparound 

coverage that is first offered no earlier 

than January 1, 2016 and no later than 

December 31, 2018 and that ends no 

later than on the later of: 

(1) The date that is three years after 

the date limited wraparound coverage is 

first offered; or 

(2) The date on which the last 

collective bargaining agreement relating 

to the plan terminates after the date 

limited wraparound coverage is first 

offered (determined without regard to 

any extension agreed to after the date 

limited wraparound coverage is first 

offered). 

* * * * * 

Department of Health and Human 

Services 

45 CFR Subtitle A 

For the reasons stated in the 

preamble, the Department of Health and 

Human Services amends 45 CFR part 

146 as set forth below: 

PART 146—REQUIREMENTS FOR THE 

GROUP HEALTH INSURANCE 

MARKET 

■ 5. The authority citation for part 146 

continues to read as follows: 

Authority: Secs. 2702 through 2705, 2711 

through 2723, 2791, and 2792 of the PHS Act 

(42 U.S.C. 300gg–1 through 300gg–5, 300gg– 

11 through 300gg–23, 300gg–91, and 300gg– 

92). 

■ 6. Section 146.145 is amended by 

adding paragraph (b)(3)(vii) to read as 

follows: 

§ 146.145 Special rules relating to group 

health plans. 

* * * * * 

(b) * * * 

(3) * * * 

(vii) Limited wraparound coverage. 

Limited benefits provided through a 

group health plan that wrap around 

eligible individual health insurance (or 

Basic Health Plan coverage described in 

section 1331 of the Patient Protection 

and Affordable Care Act); or that wrap 

around coverage under a Multi-State 

Plan described in section 1334 of the 

Patient Protection and Affordable Care 

Act, collectively referred to as ‘‘limited 

wraparound coverage,’’ are excepted 

benefits if all of the following 

conditions are satisfied. For this 

purpose, eligible individual health 

insurance is individual health insurance 

coverage that is not a grandfathered 

health plan (as described in section 

1251 of the Patient Protection and 

Affordable Care Act and § 147.140 of 

this subchapter), not a transitional 

individual health insurance plan (as 

described in the March 5, 2014 

Insurance Standards Bulletin Series— 

Extension of Transitional Policy through 

October 1, 2016), and does not consist 

solely of excepted benefits (as defined 

in paragraph (b) of this section). 

(A) Covers additional benefits. The 

limited wraparound coverage provides 

meaningful benefits beyond coverage of 

cost sharing under either the eligible 

individual health insurance, Basic 

Health Program coverage, or Multi-State 

Plan coverage. The limited wraparound 

coverage must not provide benefits only 

under a coordination-of-benefits 

provision and must not consist of an 

account-based reimbursement 

arrangement. 

(B) Limited in amount. The annual 

cost of coverage per employee (and any 

covered dependents, as defined in 

§ 144.103 of this subchapter) under the 

limited wraparound coverage does not 

exceed the greater of the amount 

determined under either paragraph 

(b)(3)(vii)(B)(1) or (2) of this section. 

Making a determination regarding the 

annual cost of coverage per employee 

must occur on an aggregate basis relying 

on sound actuarial principles. 

(1) The maximum permitted annual 

salary reduction contribution toward 

health flexible spending arrangements, 

indexed in the manner prescribed under 

section 125(i)(2) of the Internal Revenue 

Code. For this purpose, the cost of 

coverage under the limited wraparound 

includes both employer and employee 

contributions towards coverage and is 

determined in the same manner as the 

applicable premium is calculated under 

a COBRA continuation provision. 

(2) Fifteen percent of the cost of 

coverage under the primary plan. For 

this purpose, the cost of coverage under 

the primary plan and under the limited 

wraparound coverage includes both 

employer and employee contributions 

towards the coverage and each is 

determined in the same manner as the 

applicable premium is calculated under 

a COBRA continuation provision. 

(C) Nondiscrimination. All of the 

conditions of this paragraph 

(b)(3)(vii)(C) are satisfied. 

(1) No preexisting condition 

exclusion. The limited wraparound 

coverage does not impose any 

preexisting condition exclusion, 


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14008 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 

consistent with the requirements of 

section 2704 of the PHS Act and 

§ 147.108 of this subchapter. 

(2) No discrimination based on health 

status. The limited wraparound 

coverage does not discriminate against 

individuals in eligibility, benefits, or 

premiums based on any health factor of 

an individual (or any dependent of the 

individual, as defined in § 144.103 of 

this subchapter), consistent with the 

requirements of section 2705 of the PHS 

Act. 

(3) No discrimination in favor of 

highly compensated individuals. 

Neither the limited wraparound 

coverage, nor any other group health 

plan coverage offered by the plan 

sponsor, fails to comply with section 

2716 of the PHS Act or fails to be 

excludible from income for any 

individual due to the application of 

section 105(h) of the Internal Revenue 

Code (as applicable). 

(D) Plan eligibility requirements. 

Individuals eligible for the wraparound 

coverage are not enrolled in excepted 

benefit coverage under paragraph 

(b)(3)(v) of this section (relating to 

health FSAs). In addition, the 

conditions set forth in either paragraph 

(b)(3)(vii)(D)(1) or (2) of this section are 

met. 

(1) Limited wraparound coverage that 

wraps around eligible individual 

insurance for persons who are not fulltime employees. Coverage that wraps 

around eligible individual health 

insurance (or that wraps around Basic 

Health Plan coverage) must satisfy all of 

the conditions of this paragraph 

(b)(3)(vii)(D)(1). 

(i) For each year for which limited 

wraparound coverage is offered, the 

employer that is the sponsor of the plan 

offering limited wraparound coverage, 

or the employer participating in a plan 

offering limited wraparound coverage, 

offers to its full-time employees 

coverage that is substantially similar to 

coverage that the employer would need 

to offer to its full-time employees in 

order not to be subject to a potential 

assessable payment under the employer 

shared responsibility provisions of 

section 4980H(a) of the Internal 

Revenue Code, if such provisions were 

applicable; provides minimum value (as 

defined in section 36B(c)(2)(C)(ii) of the 

Internal Revenue Code); and is 

reasonably expected to be affordable 

(applying the safe harbor rules for 

determining affordability set forth in 26 

CFR 54.4980H–5(e)(2)). If a plan or 

issuer providing limited wraparound 

coverage takes reasonable steps to 

ensure that employers disclose to the 

plan or issuer necessary information 

regarding their coverage offered and 

affordability information, the plan or 

issuer is permitted to rely on reasonable 

representations by employers regarding 

this information, unless the plan or 

issuer has specific knowledge to the 

contrary. In the event that the employer 

that is the sponsor of the plan offering 

wraparound coverage, or the employer 

participating in a plan offering 

wraparound coverage, has no full-time 

employees for any plan year limited 

wraparound coverage is offered, the 

requirement of this paragraph 

(b)(3)(vii)(D)(1)(i) is considered 

satisfied. 

(ii) Eligibility for the limited 

wraparound coverage is limited to 

employees who are reasonably 

determined at the time of enrollment to 

not be full-time employees (and their 

dependents, as defined in § 144.103 of 

this subchapter), or who are retirees 

(and their dependents, as defined in 

§ 144.103 of this subchapter). For this 

purpose, full-time employees are 

employees who are reasonably expected 

to work at least an average of 30 hours 

per week. 

(iii) Other group health plan coverage, 

not limited to excepted benefits, is 

offered to the individuals eligible for the 

limited wraparound coverage. Only 

individuals eligible for the other group 

health plan coverage are eligible for the 

limited wraparound coverage. 

(2) Limited coverage that wraps 

around Multi-State Plan coverage. 

Coverage that wraps around Multi-State 

Plan coverage must satisfy all of the 

conditions of this paragraph 

(b)(3)(vii)(D)(2). For this purpose, the 

term ‘‘full-time employee’’ means a 

‘‘full-time employee’’ as defined in 26 

CFR 54.4980H–1(a)(21) who is not in a 

limited non-assessment period for 

certain employees (as defined in 26 CFR 

54.4980H–1(a)(26)). Moreover, if a plan 

or issuer providing limited wraparound 

coverage takes reasonable steps to 

ensure that employers disclose to the 

plan or issuer necessary information 

regarding their coverage offered and 

contribution levels for 2013 or 2014 (as 

applicable), and for any year in which 

limited wraparound coverage is offered, 

the plan or issuer is permitted to rely on 

reasonable representations by employers 

regarding this information, unless the 

plan or issuer has specific knowledge to 

the contrary. Consistent with the 

reporting and evaluation criteria of 

paragraph (b)(3)(vii)(E) of this section, 

the Office of Personnel Management 

may verify that plans and issuers have 

reasonable mechanisms in place to 

ensure that contributing employers meet 

these standards. 

(i) The limited wraparound coverage 

is reviewed and approved by the Office 

of Personnel Management, consistent 

with the reporting and evaluation 

criteria of paragraph (b)(3)(vii)(E) of this 

section, to provide benefits in 

conjunction with coverage under a 

Multi-State Plan authorized under 

section 1334 of the Patient Protection 

and Affordable Care Act. The Office of 

Personnel Management may revoke 

approval if it determines that continued 

approval is inconsistent with the 

reporting and evaluation criteria of 

paragraph (b)(3)(vii)(E) of this section. 

(ii) The employer offered coverage in 

the plan year that began in either 2013 

or 2014 that is substantially similar to 

coverage that the employer would need 

to have offered to its full-time 

employees in order to not be subject to 

an assessable payment under the 

employer shared responsibility 

provisions of section 4980H(a) of the 

Internal Revenue Code, if such 

provisions had been applicable. In the 

event that a plan that offered coverage 

in 2013 or 2014 has no full-time 

employees for any plan year limited 

wraparound coverage is offered, the 

requirement of this paragraph 

(b)(3)(vii)(D)(2)(ii) is considered 

satisfied. 

(iii) In the plan year that began in 

either 2013 or 2014, the employer 

offered coverage to a substantial portion 

of full-time employees that provided 

minimum value (as defined in section 

36B(c)(2)(C)(ii) of the Internal Revenue 

Code) and was affordable (applying the 

safe harbor rules for determining 

affordability set forth in 26 CFR 

54.4980H–5(e)(2)). In the event that the 

plan that offered coverage in 2013 or 

2014 has no full-time employees for any 

plan year limited wraparound coverage 

is offered, the requirement of this 

paragraph (b)(3)(vii)(D)(2)(iii) is 

considered satisfied. 

(iv) For the duration of the pilot 

program, as described in paragraph 

(b)(3)(vii)(F) of this section, the 

employer’s annual aggregate 

contributions for both primary and 

limited wraparound coverage are 

substantially the same as the employer’s 

total contributions for coverage offered 

to full-time employees in 2013 or 2014. 

(E) Reporting—(1) Reporting by group 

health plans and group health 

insurance issuers. A self-insured group 

health plan, or a health insurance 

issuer, offering or proposing to offer 

limited wraparound coverage in 

connection with Multi-State Plan 

coverage pursuant to paragraph 

(b)(3)(vii)(D)(2) of this section reports to 

the Office of Personnel Management 

(OPM), in a form and manner specified 

in guidance, information OPM 

reasonably requires to determine 


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Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Rules and Regulations 14009 

whether the plan or issuer qualifies to 

offer such coverage or complies with the 

applicable requirements of this section. 

(2) Reporting by group health plan 

sponsors. The plan sponsor of a group 

health plan offering limited wraparound 

coverage under paragraph (b)(3)(vii) of 

this section, must report to the 

Department of Health and Human 

Services (HHS), in a form and manner 

specified in guidance, information HHS 

reasonably requires. 

(F) Pilot program with sunset—The 

provisions of paragraph (b)(3)(vii) of this 

section apply to limited wraparound 

coverage that is first offered no earlier 

than January 1, 2016 and no later than 

December 31, 2018 and that ends no 

later than on the later of: 

(1) The date that is three years after 

the date limited wraparound coverage is 

first offered; or 

(2) The date on which the last 

collective bargaining agreement relating 

to the plan terminates after the date 

limited wraparound coverage is first 

offered (determined without regard to 

any extension agreed to after the date 

limited wraparound coverage is first 

offered). 

* * * * * 

[FR Doc. 2015–06066 Filed 3–16–15; 11:15 am] 

BILLING CODE 4830–01–P; 4510–29–P; 4120–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2013–0907] 

RIN 1625–AA00 

Safety Zones; Upper Mississippi River 

Between Mile 38.0 and 46.0, Thebes, IL; 

and Between Mile 78.0 and 81.0, Grand 

Tower, IL. 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule; correction. 

SUMMARY: The Coast Guard published in 

the Federal Register of March 5, 2015, 

a final rule document making final an 

interim rule previously published at 79 

FR 66622 on November 10, 2014. The 

March 5 final rule incorrectly cited the 

interim rule as published at 77 FR 

75850 on December 26, 2012. This 

document corrects the citation and date 

in that final rule to correctly reflect the 

proper interim rule citation and 

effective date. 

DATES: Effective on March 18, 2015. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email LT Dan McQuate, U.S. Coast 

Guard; telephone 270–442–1621, email 

daniel.j.mcquate@uscg.mil. If you have 

questions on viewing or submitting 

material to the docket, call Cheryl F. 

Collins, Program Manager, Docket 

Operations, telephone (202) 366–9826. 

SUPPLEMENTARY INFORMATION: The Coast 

Guard published a document in the 

Federal Register of March 5, 2015 

making an interim rule final as 

published. The citation to the interim 

rule was published incorrectly. This 

correction removes the incorrect citation 

and amendatory instruction for 33 CFR 

part 165. 

In rule FR Doc. 2015–03331 published 

on March 5, 2015 (80 FR 11885), make 

the following correction. On page 

11887, in the third column, correct the 

last full paragraph of the document to 

read as follows: Accordingly, the 

interim rule amending 33 CFR part 165 

that published at 79 FR 66622 on 

November 10, 2014, is adopted as a final 

rule without change. 

Dated: March 12, 2015. 

Katia Cervoni, 

Chief, Office of Regulations and 

Administrative Law, U.S. Coast Guard. 

[FR Doc. 2015–06174 Filed 3–17–15; 8:45 am] 

BILLING CODE 9110–04–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2013–0797; FRL–9921–01] 

Boscalid; Pesticide Tolerances 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulation establishes 

tolerances for residues of boscalid in or 

on dill seed, the herb subgroup 19A, the 

stone fruit group 12–12, and the tree nut 

group 14–12. Interregional Research 

Project Number 4 (IR–4) requested these 

tolerances under the Federal Food, 

Drug, and Cosmetic Act (FFDCA). In 

addition, this regulation removes 

established tolerances for certain 

commodities/groups superseded by this 

action, and corrects the spelling of 

papaya. 

DATES: This regulation is effective 

March 18, 2015. Objections and requests 

for hearings must be received on or 

before May 18, 2015, and must be filed 

in accordance with the instructions 

provided in 40 CFR part 178 (see also 

Unit I.C. of the SUPPLEMENTARY

INFORMATION). 

ADDRESSES: The docket for this action, 

identified by docket identification (ID) 

number EPA–HQ–OPP–2013–0797, is 

available at http://www.regulations.gov 

or at the Office of Pesticide Programs 

Regulatory Public Docket (OPP Docket) 

in the Environmental Protection Agency 

Docket Center (EPA/DC), West William 

Jefferson Clinton Bldg., Rm. 3334, 1301 

Constitution Ave. NW., Washington, DC 

20460–0001. The Public Reading Room 

is open from 8:30 a.m. to 4:30 p.m., 

Monday through Friday, excluding legal 

holidays. The telephone number for the 

Public Reading Room is (202) 566–1744, 

and the telephone number for the OPP 

Docket is (703) 305–5805. Please review 

the visitor instructions and additional 

information about the docket available 

at http://www.epa.gov/dockets. 

FOR FURTHER INFORMATION CONTACT: 

Susan Lewis, Registration Division 

(7505P), Office of Pesticide Programs, 

Environmental Protection Agency, 1200 

Pennsylvania Ave. NW., Washington, 

DC 20460–0001; main telephone 

number: (703) 305–7090; email address: 

RDFRNotices@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. General Information 

A. Does this action apply to me? 

You may be potentially affected by 

this action if you are an agricultural 

producer, food manufacturer, or 

pesticide manufacturer. The following 

list of North American Industrial 

Classification System (NAICS) codes is 

not intended to be exhaustive, but rather 

provides a guide to help readers 

determine whether this document 

applies to them. Potentially affected 

entities may include: 

• Crop production (NAICS code 111). 

• Animal production (NAICS code 

112). 

• Food manufacturing (NAICS code 

311). 

• Pesticide manufacturing (NAICS 

code 32532). 

B. How can I get electronic access to 

other related information? 

You may access a frequently updated 

electronic version of EPA’s tolerance 

regulations at 40 CFR part 180 through 

the Government Publishing Office’s eCFR site at http://www.ecfr.gov/cgi-bin/ 

text-idx?&c=ecfr&tpl=/ecfrbrowse/

Title40/40tab_02.tpl. 

C. How can I file an objection or hearing 

request? 

Under FFDCA section 408(g), 21 

U.S.C. 346a, any person may file an 

objection to any aspect of this regulation 

and may also request a hearing on those 

objections. You must file your objection 

or request a hearing on this regulation 

in accordance with the instructions 


wreier-aviles on DSK5TPTVN1PROD with RULES