Minimum Value Plans (MVP) Satisfy the B Penalty
What is Minimum Value and Why is it Important?
What it is: Minimum Value is an ACA requirement that ensures health insurance policies and plans provide meaningful coverage at or above a threshold level. Minimum Value is met when a plan pays on average at least 60% of the actuarial value of the total allowed cost of benefits under the plan. This means that enrollees pay—via deductibles, coinsurance, copayments and other out-of-pocket amounts— on average no more than 40% of the total allowed cost of benefits. Minimum Value does not take into account the amount paid for premium. An example of an employer plan that might not meet the 60% requirement is a “mini-med” or catastrophic coverage only plan.
Why it matters: Minimum value affects large employers because the health plans they offer must meet Minimum Value (and Affordability) in order to avoid possible penalties under the Employer Shared Responsibility provisions of the ACA. Individual and small employer plans (unless grandfathered) also must provide at least Minimum Value
Summary - Low and High MVP Plan Options
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