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Breaking News: Transition Relief Granted Under ACA for Minimum-Value Health Insurance Plans Without Hospital or Physician Coverage

The Obama administration announced today that employers will not face penalties under the Affordable Care Act if, prior to Nov. 4, 2014—in reliance on the government’s minimum value calculator—they had committed to adopting or begun enrolling employees in plans that do not cover inpatient hospitalization or physician services. ASA had met with officials at the U.S. Department of Treasury on Oct. 8 to discuss the challenges faced by staffing firms in obtaining minimum value coverage and explain why transition relief was critical for those firms that relied in good faith on the government’s calculator.

The transition relief is set forth in Notice 2014-69, issued jointly by the U.S. Internal Revenue Service (a bureau of the Treasury Department) and the U.S. Department of Health and Human Services. The relief applies to plan years that begin no later than March 1, 2015. Employers must not state or imply that employees who are offered such plans in 2015 may not obtain a premium tax credit and must correct any prior statements to that effect.

ASA will publish a detailed analysis of the guidance in tomorrow’s issue of Staffing Today.