Minimum Value of an Employer-Sponsored Health Plan

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This notice from the Internal Revenue Service (IRS) describes and requests comments on several possible approaches to determining whether health coverage under an eligible employer-sponsored plan provides minimum value. IRS requested comment on three possible ways it could calculate whether an employer’s offer of insurance precludes an employee from being eligible for a premium tax credit. Under the ACA, an employer’s plan doesn’t pass the minimum value test if “the plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs.” The first method for figuring out minimum value would be through the HHS and Treasury actuarial value calculator. Another option is coming up with checklists that determine that the employer plans meet the law’s minimum value standard. Finally, plans with features that couldn’t be determined by an AV calculator could be certified by an actuary. The IRS is seeking comments by June 11, 2012 on the notice.

Read the notice here.