Blue Cross and Blue Shield of Illinois



May 10, 2013

Legislative Update
IRS Releases Proposed Regulations on Minimum Value

On May 1, the Internal Revenue Service released proposed regulations on the minimum value of eligible employer-sponsored plans and other regulations regarding the federal premium tax credit.

Starting in 2014, whether a plan provides minimum value will be relevant in determining an employee’s eligibility for the premium tax credit and any potential penalty owed by the employer under the Employer Shared Responsibility provisions. 

The proposed regulations affect individuals who enroll in qualified health plans through health insurance exchanges (also known as health insurance marketplaces) and claim the premium tax credit, and exchanges that make qualified health plans available to individuals and employers. The proposed regulations also provide guidance on determining whether health care coverage under an eligible employer-sponsored plan provides minimum value and affects employers that offer health coverage and their employees.

Comments are due 60 days after its May 3 publication in the Federal Register.

We are currently reviewing the proposed regulations and will provide more information as it becomes available.



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A Division of Health Care Service Corporation, a Mutual Legal Reserve Company,
an Independent Licensee of the Blue Cross and Blue Shield Association.