There are clients who are wondering if their health plan passes muster under the health reform law? Based upon the changes forced upon them by the carriers to the increased costs I tend to doubt it. But getting the answers from the government is not possible yet. Personally I don’t think they have everything define and worked out yet.
The law’s “minimum value” rule sates that employers must cover at least 60% of total allowed health benefits to avoid fines, if full-time workers opt out of the plans in favor of federally subsidized insurance.
But Uncle will not be issuing formal rules on how to calculate the trigger until sometime this summer. According to Kiplinger’s they believe the odds are, most employers will get a passing grade. The majority of plans already cover 85% to 90% of allowable benefits, well clear of the law’s threshold.
Those that fall short of the “minimum value” face stiff fines: $3,000 a year for each worker opting out.
I believe that this will have an impact on the election depending on the IRS timeline and the results.