Proposed regulations provide guidance on minimum value of employer-sponsored coverage

Tax Hot Topics: Minimum value guidanceThe IRS recently issued proposed regulations (REG-143800-14) to provide guidance on determining whether employer-sponsored health coverage provides minimum value. Large employers that provide employer-sponsored coverage must provide minimum value to avoid possible excises taxes under the Affordable Care Act’s (ACA’s) employer mandate provisions.  

An employer-sponsored health plan provides minimum value if the plan’s share of total allowed costs of benefits provided to an employee is at least 60%. These proposed regulations state that for the plan to provide minimum value, it must provide substantial coverage of inpatient hospital and physician services. This change to the minimum value requirements is meant to eliminate some forms of employer-provided coverage that wouldn’t cover the cost of inpatient hospital and physician services.

Eddie Adkins
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Jeffrey Martin
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