Wednesday, September 2, 2015

IRS Proposes New “Minimum Value” Definition for Health Plans

Dave Kyllo

The Internal Revenue Service has been busy this week proposing a new rule related to the Affordable Care Act. In a supplemental notice of proposed rulemaking, the IRS proposes withdrawing in part a notice of proposed rulemaking published in 2013 and replacing the deleted portion with new proposed guidance for determining whether health coverage under an eligible employer-sponsored plan provides “minimum value.” 

While the proposed regulations apply for plan years beginning after November 3, 2014, the revised minimum value regulations apply for the end of plan years beginning no later than March 1, 2015. The proposed rule states that an eligible employer-sponsored plan provides minimum value only if the plan’s share of the total allowed costs of benefits provide to an employee is at least 60 percent and the plan provides substantial coverage of inpatient hospital and physician services. Comments are due to the IRS on November 2, 2015.   

The ACA is complex and choosing the right employee health insurance coverage can be daunting task for providers. Before making a final decision about their 2016 coverage, AHCA/NCAL members are encouraged to check out AHCA/NCAL Insurance Solutions. This “Members Only” program is designed to give AHCA/NCAL members access to brokers who understand long term care and who truly know the ACA and its myriad requirements. 

More importantly, AHCA/NCAL Insurance Solutions is designed to save members money on one of their largest workforce expenses. For more information, contact Dave Kyllo (202-898-6312) or Nick Cianci (202-898-2841) or email us at AHCA/NCAL Insurance Solutions.

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