"Minimum Value” (MV) Information and Notices Employers are Required to Provide
Regarding Their Health Coverage Under the Affordable Care Act
The Fair Labor Standards Act (FLSA), section 18B, requires most employers to send notices of coverage options and information about current coverage to all employees by October 1, 2013. (See attachments). Among other things the notices must advise employees whether their coverage meets the minimum value standard under the ACA (which is met if the health plan’s share of the total allowed benefit costs covered by the plan is no less than 60% percent of such costs).
Although small employers are not required to provide coverage that meets the minimum value standard, and penalties for large employer not providing minimum coverage have been postponed until 2015, it is still required and important for small and large employers to provide this notice. If coverage offered through an employer does not meet certain standards (including “minimum value”) the employee may be eligible for subsidies such as premium tax credits for health plans purchased on the Exchange. If the health plan offered by the employer does meet ACA standards employees will generally not be eligible for subsidies on the Exchange.
In general the new 2014 metal plans will meet the ACA minimum value standard. However, some grandfathered plans and non-grandfather plans renewed prior to 2014 will not meet the ACA minimum value standard. In order to assist employers in providing required notices the Bureau has contacted our three largest carriers in the large group and small group markets (Anthem, Aetna and Harvard Pilgrim). All three carriers have confirmed that they will provide information and assist employers in answering questions about minimum value. The Bureau will expect other carriers to offer assistance upon request as well. Employers may contact the carriers or their producers for assistance. Any employer unable to obtain information or assistance from a carrier as to whether their 2014 coverage meets the minimum value standard is invited to contact the Maine Bureau of Insurance for assistance.
Guidance on the Notice to Employees of Coverage Options Under Fair Labor Standards Act § 18B and Updated Model Election Notice Under the Consolidated Omnibus Budget Reconciliation Act of 1985
New Health Insurance Marketplace Coverage Options and Your Health Coverage