Health Care Reform: Recent News & Events

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Administration Acts on Minimum Value Plans that Exclude Hospital Coverage - Tuesday, November 4, 2014

Source: National Association of Health Underwriters

November 4, 2014, NAHU – NAHU members have reported receiving solicitations for group plans that purport to meet the ACA’s minimum value requirements while excluding inpatient hospital coverage. We have had reservations about whether these plans were in compliance with the ACA. That question was answered today by IRS Notice 2014-69.

While rules are yet to be issued, the crux of the notice provides the following:

  1. Plans without hospitalization are not going to meet minimum value (MV).
  2. Employers that relied on the HHS minimum value calculator AND who have contracts already executed predating this guidance date of November 3, 2014, will not be penalized but their plan will need to change at the end of the contract.
  3. Employees who have an offer of coverage that is MV but doesn’t include hospitalization will still be able to access tax credits.
  4. Employers who have contracted for these plans must amend any communications that state that an employee cannot access tax subsidies if enrolled in one of these plans.

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