Health plans that are trying to offer a stripped down Minimal Value plan to save costs and avoid penalties need to be careful. The Fed is cracking down on these types of plans by requiring in-patient hospitalization services as part of the coverage. Please see below release via IRS Guidewire.
Group Health Plans That Fail to Cover In-Patient Hospitalization Services
VIA IRS GUIDEWIRE:
Notice 2014-69 advises employers and other taxpayers that employer-sponsored health plans that fail to provide substantial coverage for in-patient hospitalization services or for physician services do not provide minimum value within the meaning of § 36B and that the IRS, the Treasury Department, and the Department of Health and Human Services (HHS) expect shortly to propose regulations to this effect. The notice also advises that IRS, Treasury, and HHS are considering whether the continuance tables underlying the Minimum Value Calculator produce valid actuarial results for plans with these designs. Employers offering plans that fail to cover in-patient hospitalization or physician services should exercise caution in relying on the Minimum Value Calculator to demonstrate that these plans provide minimum value for any portion of a taxable year after publication of final regulations.