Lots of Buzz on the Future of MVP Plans
Unique ID: 03b20338-6ab2-4d30-bad3-2f412b6b9716
By now, you’ve all heard the stories coming out of Washington with regards to the Minimum Value Plans (MVP) plans. Are they here to stay, or do we need to find alternative solutions for employees? The answer isn’t so simple and we will have to wait until after the mid-term election to see if there will be any changes. But, here's what we do know:
- As things stand today, the MVP plans are compliant with the ACA.
- There is a strong likelihood that Treasury will revise the CMS MV calculator that determines MVP status to assure In-Patient Hospitalization is included, which would then make the MVP plans ‘non-standard’ and they would need actuarial determination for MVP qualification.
- If the current MVP plans lose Minimum Value status, they would still maintain Minimum Essential Coverage (MEC) status.
- Simply offering a MEC plan eliminates the $2,000 penalty for employers, regardless of who enrolls in the plan.
- We were informed at the American Staffing Association Conference that there is a high probability firms that have engaged in MVP type plans will receive Transitional Relief – this will be determined once they make the a ruling on the calculator.
- In the meantime, we have several alternative solutions that can help Employers maintain compliance with ACA – Bronze level plans, MEC plans, and the list goes on.
So what do you need to do as an employer as we wait for potential changes in the ruling?
- Stay the course, Assurance is closely monitoring the situation and will continue to provide guidance.
- Work closely with your Advisor to set your game plan for January 1, 2015.
We understand the stress and confusion this type of buzz creates for our clients. Assurance remains focused on providing options that create a peace of mind for you and your employees – and comply with regulations. We are VERY confident with the plan we have in place, as per traditional Assurance protocol, and remain committed to providing viable healthcare solutions and advice for our clients.
For more information on how to be prepared for the Employer Mandate deadline of January 1, 2015, check out our latest Assurance University Webinar Replay, “Your Last-Minute Guide to ACA Compliance – Staffing.”
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