“Several unions want the Labor Department to broadly authorize employer-sponsored “wraparound” coverage for workers to supplement their exchange plan benefits and subsidies, according to comments on a rule that is currently being reviewed by the White House.
Under a little-noticed proposed rule the Labor Department issued on Dec. 24, the Obama administration proposed to treat as “excepted benefits” certain limited coverage provided by employers that would wrap around an individual market policy. If the wraparound coverage meets a number of requirements, it’s considered an excepted benefit and would not disqualify the employee from getting subsidized coverage on the exchanges. While unions generally supported the concept, many complained that the parameters the administration proposed would prevent lower wage employees from having access to the coverage and they are the ones that would benefit most.”