What must employer-sponsored insurance plans offer regarding the Minimum Value (MV) standard?

Employer-sponsored insurance plans are required to meet specific criteria regarding the Minimum Value (MV) standard, which ensures that plans provide a minimum level of coverage for employees. To satisfy the MV requirement, a plan must have an actuarial value (AV) of at least 60%. This means that the plan is designed to cover, on average, at least 60% of the total allowed costs of benefits provided under the plan, which ensures a reasonable level of coverage for employees and helps protect them against high medical expenses.

Plans that fall below this threshold would not meet the MV standard, putting employees at risk for having insufficient coverage. This minimum threshold is crucial as it forms part of the regulations stemming from the Affordable Care Act, which aims to improve the quality and affordability of health insurance.