SPBA Email Alert – November 4, 2014
Agencies Release a Notice on Group Health Plans that Fail to Cover In-Patient Hospitalization Services
In IRS Notice 2014-69, the agencies state that plans that fail to provide substantial coverage for in-patient hospitalization services or for physician services (or for both) do not provide the minimum value intended by the minimum value requirement and will shortly propose regulations to this effect.
According to IRS Notice 2014-69, employers should consider the consequences of the inability to rely solely on the MV Calculator (or any actuarial certification or valuation) to demonstrate that a Non-Hospital/Non-Physician Services Plan provides minimum value for any portion of any taxable year ending on or after January 1, 2015, that follows finalization of such regulations.
The link to the guidance is below. SPBA is reviewing this guidance and will reach out to agency officials for clarification as needed.