A proposed rule was released on the Affordable Care Act’s (ACA) minimum value and affordability rules. An employer’s health plan provides minimum value if the plan’s share of total allowed costs of benefits provided under the plan is no less than 60 percent. An employer’s health plan is considered affordable if an employee’s contribution for self-only coverage does not exceed 9.5 percent of income.
The proposed rule includes special provisions for determining how HRA and HSA contributions and wellness program incentives are counted when determining minimum value and affordability. Under the proposal, employer HSA contributions for the current plan year are only taken into account for minimum value. Since HSAs generally cannot be used to pay health insurance premiums, these amounts are not used for affordability. Read More
