The Internal Revenue Service (IRS) has adopted regulations proposed to minimum rules under the Affordable Care Act (ACA) to determine. These rules provide guidance on applicable large employer, whether your employer-sponsored health insurance provides minimum value for the purposes of the employer shared responsibility (ESR). This article contains information for employers to determine whether your health insurance, corresponding to the guidelines for determining minimum value
What is the minimum value
minimum value (MV).? According to the ACA provides a plan MV if your plan share of the total allowed costs provided by at least 60 percent of the benefits under the plan. In other words, it has an actuarial value (AV) of 60.
How can I calculate minimum value?
1. The Department of Health and Human Services (HHS) and the IRS created a minimum value calculator. To calculate minimum value, just type in some information about the plan, including deductibles and co-payments, to obtain a determination in the computer to see if your plan offers minimum value.
Under the proposed rules from the HHS and IRS, the MV percentage by dividing the cost of certain services, the plan by the cost of certain services for the "standard population, including the amounts of the plan pays and is the employee pays Convert and then the result to a certain percentage. "
2. is would pay through cost-sharing is determined, you can determine whether your plan from the HHS and IRS established MV met by a safe harbor , These are the plans with non-standard features that are not compatible with the MV computer. (More on safe havens below.)
3. you can determine MV of an actuarial certification from a member of the American Academy of Actuaries.
4 If you. to develop a plan that the conditions for the metallic layers meets (bronze, silver, gold and platinum), then match your plan MV standards.
What are the safe havens?
There are "safe havens", which should provide an easy way for you to see if your employer to determine funded group health plan meets the MV threshold without the computer to use. Plan designs with the following specifications are proposed as safe havens for MV Determination:
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, plan A plan with a $ 3500 integrated medical and drug deductible 80 percent, cost sharing, and $ 6,000 maximum output of-pocket limit for employee cost sharing
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a plan with a $ 4500 integrated medical and drug deductible, plan 70 percent, cost sharing, a $ 6,400 maximum out-of-pocket limit, and $ 500 employer contribution to drug costs health savings account (HSA)
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a plan with a $ 3,500 medical deductible, a $ 0 drug deductible, plan 60 percent, medical expenses cost sharing, 75 percent -Sharing, a $ 6,400 maximum out-of-pocket limit and drug co-payments of $ 10, 20 and $ 50 for the first, second and third prescription drug levels, with 75 percent coinsurance for specialty drugs.
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What happens if I enter no plan with minimum value to my employees?
If you're a large employer applicable, which provides no medical insurance for your employees, then you are at the employer shared responsibility (ESR) subject. The ESR requirement for employers with 50-99 FTE FTE (FTE) employees not in force goes to 2016. For larger employers with more than 100 FTE, this requirement will begin in 2015
Click here to learn They calculate more information about fees employer shared responsibility.
For more information about the minimum value to be determined, can be found in the publication by the IRS.
you have any questions about minimum value? Leave a comment below.
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