Crossing the Border: Temporary Employee Benefits Matthew Vuolo Partner Nelson Levine de Luca & Hamilton, LLC New York, New York 2013 Nelson Levine de Luca & Hamilton, LLC. All Rights Reserved The opinions expressed in this presentation are those of the speaker. The International Society and International Foundation disclaims responsibility for views expressed and statements made by the program speakers. 14C-1
Don t be intellectually dishonest 14C-2
Extraterritoriality (ET) of Laws Risks related to using out-of-state contracts when providing insurance coverage to employees located in jurisdictions beyond where the group policy is issued ET compliance is important for the insurer Insurer s ET compliance is important for the multinational employer 14C-3
Be a sophisticated customer 14C-4
Be a Sophisticated Customer Develop a global benefits philosophy and strategy Centralized, local support to address the day-to-day international benefit needs and inquiries 14C-5
Be a Sophisticated Customer Consolidate global programs to achieve lower costs for the employer and better terms and conditions for the employee Know your plan options Domestic, foreign or offshore Are your expats on a domestic policy? Is that the best option for your most valued employees? Know whether the product you purchased complies with the laws of the countries in which you do business Mandatory minimum benefits 14C-6
Be a Sophisticated Customer Build efficiency and promote best practices in plan management and administration ERISA compliant? HIPAA compliant? When is COBRA triggered for an expat? 14C-7
U.S. Healthcare Reform & the Expatriate 14C-8
U.S. Healthcare Reform & the Expatriate Employer Mandate Requiring large companies (50 or more employees) to offer coverage Individual Mandate Requiring most individuals to have health coverage What will be required of the expatriate in the U.S. and abroad? 14C-9
U.S. Healthcare Reform & the Expatriate Does the employer mandate apply to U.S. citizens working full-time in Canada, such that U.S. companies would be penalized for not covering these workers? As of now, probably not. As the law develops, possibly yes. 14C-10
U.S. Healthcare Reform & the Expatriate Does the individual mandate apply to U.S. citizens who are working in Canada? Would such persons be eligible to purchase insurance through the new Exchanges? No. 14C-11
U.S. Healthcare Reform & the Expatriate Does the employer mandate apply to a Canadian citizen who is working in the United States? Unclear, but probably. 14C-12
U.S. Healthcare Reform & the Expatriate Does the individual mandate apply to a Canadian citizen who is working in the United States? Yes. 14C-13
U.S. Healthcare Reform & the Expatriate If a person subject to the individual mandate has a health coverage from a Canadian issuer, will this coverage satisfy the individual mandate s requirements? Unclear. 14C-14
U.S. Healthcare Reform & the Expatriate Do the market reforms, such as the restrictions on lifetime and annual benefits limits, and requirement to cover child dependents until age 26, apply to insurance plans that cover U.S. citizens working in Canada? Unclear. 14C-15
U.S. Healthcare Reform & the Expatriate How will U.S. Healthcare Reform affect the tax liability for U.S citizens working in Canada or Canadian citizens working in the U.S.? It depends. 14C-16
Developing a Regulatory Compliance Program 14C-17
Regulatory Compliance Facilitate compliance with government mandates and regulations, and benchmark existing plans with local practices Monitor the insurance laws and regulations of the countries in which you do business Continually monitor the population of your expats, in-pats and TCNs Understand how healthcare reform impacts your expat benefit plan 14C-18
Regulatory Compliance Adds to your value proposition Saves the company money Helps retain your most valued employees Improves reputation 14C-19
Questions? 14C-20