The Skinny on “Skinny Plans”

There has been a recent increase in popularity of so-called “skinny plans” by several insurance providers. These plans aim for the bare minimum, meeting value requirements for health insurance coverage but lacking in-patient hospitalization coverage. The IRS and HHS say this is NOT okay, and are planning to issue proposed regulations saying such plans MUST include coverage for in-patient hospitalization services in order to meet minimum value requirements. Under the same notice, it will be stated that employers who promote these “skinny plans” cannot use the online minimum value calculator, as it will not offer an accurate determination of minimum value under these plans. These regulations are set to be finalized in 2015 and will likely apply to plan years beginning on or after November 4, 2014, but will likely not apply to those who have already finalized plans prior to that date.

Contact Eide Bailly’s Employee Benefits team for additional information.

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