In the Affordable Care Act, this term is used. It's a term used to describe the level of coverage a group plan must provide. This is important as it allows you to qualify for a subsidy if the value of your employer-sponsored insurance falls below the minimum.
Minimum Value Standard
The minimum value standard is one of the 10 requirements that must be met by every qualified health plan to be eligible for an exchange subsidy. This standard ensures that the plan offers coverage of at least 60% for average medical costs, and substantial coverage for physician and inpatient hospital services. This coverage will usually be included in a plan’s summary benefits and coverage (SBC).
Minimum value definitions
The minimum value of an employer's health plan, as defined by the ACA, is that it must provide sufficient coverage for its employees. The plan also has to cover enough employees so that they meet a certain threshold, known as the actuarial level, which is based upon the average cost for medical services.
In essence, the plan must cover at least 60 per cent of its actuarial values in order to qualify. This is not a large amount, but the fact that it can allow employees to purchase insurance at a much lower cost than they would have otherwise had to is important.
The terms "minimum", "maximum", and "minimum value" are used in math to refer to the smallest, and the largest values that can be found for a function within a certain domain. These terms are commonly used in math analysis and without understanding them, it's hard to know the meaning of these types of numerical data.
Another important thing to understand about minimum value is that it is different from other related concepts and teminology. Sometimes, "minimum value", "minimum necessary coverage" or "minimum cover" are used interchangeably.
The confusion is exacerbated by the fact that both terms are used in different ways and have different definitions within the ACA. As an example, a minimum coverage plan is required to provide the ten basic health benefits that are outlined under the ACA's minimum coverage regulations.
However, a plan that doesn't provide minimum essential coverage may still have to cover at least some of the ten essential health benefits in order to be considered eligible for a premium tax credit. This is because the ACA requires that every individual have health coverage.
It is important to understand this confusing concept. If you don't meet the minimum coverage requirements for health insurance, you may be subject to a tax, also known as an individual responsibility penalty.
The Affordable Healthcare Act defines'minimum essential protection' as "coverage ensuring a minimal standard of protection." This includes job-based health insurance, individual market policies, Medicare, Medicaid, CHIP, TRICARE and certain other coverage.
The ACA also mandates that every health plan provided by an employer offer a minimum percentage of benefits as essential healthcare benefits (EHBs). Preventive services, prescription medications and maternity care are all included. Some employers will also have to offer other EHBs like dental or vision.