ARCHER JORDAN/General Agents – Minimum Value Plans
MVP is the acronym for Minimum Value Plan, and refers to a comprehensive health insurance plan with at least 60% actuarial value, meaning that on average it pays at least 60% of the costs of claims submitted by policyholders in the group. In ACA parlance, MVPs with 60% actuarial value are referred to as Bronze Plans, 70% value as Silver, 80% as Gold, and 90% as Platinum.
Employers that offer “affordable” Minimum Value Plans to their full-time workers can avoid the $3,000 penalty. In general, if the employer has offered health coverage that is affordable and provides Minimum Value, an employee will not be eligible for a subsidy even if the employee rejects the offer of coverage and instead enrolls in coverage through a Marketplace or enrolls in Medicare or Medicaid. The law defines affordability as monthly insurance premium expense for single coverage that does not exceed 9.5% of an employee’s W-2, Box 1 wages.