On May 3, 2013, the Internal Revenue Service (IRS) released a proposed rule on the minimum value and affordability rules under the Affordable Care Act (ACA). In this proposed rule, the IRS provides guidance on determining whether health coverage under an employer-sponsored plan is affordable and provides minimum value for purposes of determining the employer “pay or play”penalties. In particular, the proposed regulation:
• Explains how to calculate minimum value (MV);
• Outlines special rules for determining how health reimbursement arrangements (HRAs), health savings accounts (HSAs) and wellness program incentives are counted in determining MV and affordability; and
• Provides new safe harbors for determining MV.
This proposed rule applies to tax years ending after Dec. 31, 2013.
Source: Internal Revenue Service
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