The Affordable Care Act requires applicable large employers to offer full-time employees and their dependents minimum essential health coverage providing minimum value that is affordable or pay a tax penalty. A plan provides minimum value if it has an actuarial value of at least 60%, meaning the plan pays for at least 60% of covered benefits.
The Centers for Medicare and Medicaid Services (CMS) released a draft of the 2022 Actuarial Value Calculator Methodology. The Actuarial Value Calculator reflects an empirical estimate of the actuarial value calculated by providing a close approximation to the actual average spending by a range of consumers in a standard population. This calculator is used to determine a plan’s actuarial value.
Click here for a link to the draft methodology that may be used for plans to determine if 2022 benefits provide actuarial value.
