The ACA may assess penalties on certain employers if their health plans do not provide “minimum value.” Generally, minimum value means that the plan’s share of the total allowed costs of benefits must be at least 60% of the plan’s cost. The IRS has released new regulations that further explain this rule.
Under the rule, employer HSA contributions are counted as part of the plan’s share of costs. HRA contributions may also be counted under certain circumstances. But, wellness programs will not be counted, unless they are related to tobacco cessation. The rules also lay out safe harbors for plans and methods for calculating whether a plan offers minimum value.
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