H.R. 4414, the Expatriate Health Coverage Clarification Act, fixes an oversight in the Affordable Care Act that threatens hundreds of jobs in Delaware

WASHINGTON — Today the House voted 268 to 150 to pass H.R. 4414, the Expatriate Health Coverage Clarification Act. Congressman Carney introduced this legislation in order to protect hundreds of jobs at Cigna’s facility in Wilmington, DE that are in danger of being moved overseas. In February 2014, Cigna implemented a hiring freeze at its Delaware facility and has warned of potential layoffs should this legislation not be signed into law. Cigna employs 500 people in Delaware who write the plans affected by this legislation. The Delaware delegation has been working for the past three years to ensure these jobs are protected.

“I’m pleased and gratified that my colleagues in the House came together to support a bipartisan bill that saves jobs in Delaware and across the United States and makes a reasonable, responsible fix to the Affordable Care Act,” said Congressman Carney. “The only way Congress can function is if members on both sides of the aisle work together -- like we did today. I’m hopeful that the Senate will show the same kind of wisdom and move this bill forward. I know Senators Carper and Coons will continue to work hard to make this bill become law, and I intend to do everything I can to help them.”

Cigna employees in Delaware sell, write, manage and service expatriate health insurance plans, which offer robust coverage to people working outside their home country, giving them access to a global network of health care providers. Individuals on the plan could be foreign employees working here in America, Americans working abroad, or, for instance, a German working in France. These employees can be NGO and foreign aid workers, pilots, cruise ship workers, and contractors sent to support our troops on deployment around the globe.

Inadvertently, the Affordable Care Act was written in a way that subjects U.S. expatriate health insurance plans to all the provisions of the Affordable Care Act, which places a unique burden on these types of plans, given that their foreign competitors are not subjected to the same requirements. Several U.S. health insurance companies -- Cigna, MetLife, Aetna, and United Health -- offer expatriate health insurance plans. These insurance companies compete with foreign insurance companies that also sell expatriate health insurance plans, but which are not required to comply with the Affordable Care Act. This imbalance gives their foreign competitors an unfair advantage.

The Expatriate Health Coverage Clarification Act legislation clarifies that the Affordable Care Act does not apply to expatriate health insurance plans. It ensures that U.S.-based expatriate insurance carriers can compete on a level playing field with their foreign competitors and that American jobs stay here in America.

 

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