IRS Seeks Input on Options for Finding Health Plan ‘Minimum Value'

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IRS issues three notices requesting comments on how to determine whether a health plan provides “minimum value” and on several new reporting requirements. IRS in Notice 2012-31 proposes giving insurers and group health plans three options for determining minimum value. Notices 2012-32 and 2012-33 request comments on reporting requirements under tax code sections 6055 and 6056. Based on future guidance from the Treasury Department and IRS, employer-sponsored plans would be permitted to chose any one of three methods for determining whether a plan meets the minimum value standard prescribed by the health care reform law, IRS explains. Beginning in 2014, an employee or family member who is eligible to enroll in an employer-sponsored plan will qualify for a premium tax credit if coverage for the employee is unaffordable, as defined under tax code Section 36B(c)(2)(C)(i)(II), or does not provide minimum value, as defined under tax code Section 6B(2)(c)(2)(C)(ii).