To avoid 4980(b) penalties, large group plans must provide minimum value.
Beginning in 2014, eligible individuals who purchase coverage under a qualified health plan through an Affordable Insurance Exchange may receive a premium tax credit under § 36B unless they are eligible for other minimum essential coverage, including coverage under an employer-sponsored plan that is affordable to the employee and provides minimum value.
And beginning in 2015, employers with 50 or more Full-Time Equivalent (FTE) employees the do not offer affordable group coverage that provides minimum value will be subject to an employer shared responsibility payment.
HHS has created a minimum value calculator to help plans determine if they provide minimum value.
Source: IRS Notice 2012-31
Regulations and Guidance
|Proposed Rules: Minimum Value of Eligible Employer-Sponsored Plans and Other Rules Regarding the Health Insurance Premium Tax Credit
These proposed regulations provide, among other things, guidance on determining whether health coverage under an eligible employer-sponsored plan provides minimum value and affect employers that offer health coverage and their employees. (04/30/2013)
|Notice 2012-31: Minimum Value of an Employer-Sponsored Health Plan
This notice describes and requests comments on several possible approaches to determining whether health coverage under an eligible employer-sponsored plan provides minimum value. (04/26/2012)
Using the Minimum Value Calculator and Minimum Value Safe Harbor
Presented August 1, 2013. From MedBen’s Affordable Care Act Webinar Series, hosted by Caroline Fraker, Vice President of Compliance & Chief Privacy Officer.