?Ç£Minimum Value?Ç¥ Plans Must Provide Substantial Coverage for Hospitalization and Physician Services
The Department of Treasury and the Department of Health and Human Services (the ?Ç£Departments?Ç¥) issued IRS Notice 2014-69 stating that health plans that fail to provide substantial coverage for in-patient hospitalization services or for physician services (or both) do not provide the ?Ç£minimum value?Ç¥ that is required by the Patient Protection and Affordable Care Act. Proposed regulations to that effect are expected to be issued in 2015. Employers are unable to rely solely on the minimum value calculator to demonstrate that plans provide minimum value for any portion of any taxable year ending on or after January 1, 2015, following finalization of the regulations. The Departments did provide limited grandfathering solely in the case of an employer that has entered into a binding written commitment to adopt, or has begun enrolling employees in, such plans prior to November 4, 2014. Employers maintaining such grandfathered plans will not be subject to Internal Revenue Code Section 4980H penalties, provided that the plan year for such plans begins no later than March 1, 2015.
IRS Notice 2014-69 can be found here.