What is Minimum Value?

Last week we went over minimum essential coverage (MEC) and how it’s important to offer coverage that meets it. Another requirement of Affordable Care Act compliant coverage is that it also meet a minimum value.

What is Minimum Value?
Minimum value is a standard of minimum coverage that applies to health plans employers offer. If the plan you offer meets this standard as well as the MEC standard, you’re considered ACA compliant in the coverage you offer.

A health plan meets the minimum value requirement if:

• It’s set up to pay at least 60% of the total cost of medical services for a standard population and
• Its benefits include substantial coverage of physician and inpatient hospital services.

Reporting Minimum Value
Don’t forget that you have to report the coverage you offer that meets MEC and minimum value requirements on Forms 1094 and 1095! And ExpressACAForms can help you e-file those forms quickly, easily, and securely!

If you’re looking for something a little more in-depth (think features to help make sure your coverage meets minimum requirements and is offered on time) in your ACA reporting, try out our sister product, ACAwise! You can sign up for a free demo today over at www.ACAwise.com or by calling (704) 954-8420.