May 2013 – Health Care Reform Developments

Proposed Regulations on Minimum Value

The IRS has issued proposed regulations explaining how to determine if an employer-sponsored group health plan provides minimum value. The term minimum value, which was introduced by the Affordable Care Act, has significance for both individuals and employers. Individuals who are not offered coverage under an employer-sponsored plan that provides minimum value may be able to receive a premium assistance credit to help them purchase health coverage through a health insurance marketplace. Employers that do not offer minimum value coverage may face penalties if a full-time employee purchases health insurance through a marketplace and receives a premium assistance credit.

Application for Health Insurance

The Centers for Medicare & Medicaid Services (CMS) has simplified and shortened the application for health coverage that individuals will complete in order to purchase health coverage through a health insurance marketplace. The applications, which can be submitted starting on October 1, can be found at http://cciio.cms.gov/resources/other/index.html#hie (scroll down to “Forms” under the Affordable Insurance Exchanges heading and look for April 30, 2013 Marketplace Consumer Application).