§ 1.36B-6 Minimum value. ( a ) *In general* — ( 1 ) *Employees.* An eligible employer-sponsored plan provides minimum value (MV) for an employee of the employer offering the coverage only if— ( i ) The plan's MV percentage, as defined in paragraph (c) of this section, is at least 60 percent based on the plan's share of the total allowed costs of benefits provided to the employee; and
( ii ) The plan provides substantial coverage of inpatient hospital services and physician services.
( 2 ) *Related individuals* — ( i ) *In general.* An eligible employer-sponsored plan provides MV for an individual who may enroll in the plan because of a relationship to an employee of the employer offering the coverage (a related individual) only if— ( A ) The plan's MV percentage, as defined in paragraph (c) of this section, is at least 60 percent based on the plan's share of the total allowed costs of benefits provided to the related individual; and
( B ) The plan provides substantial coverage of inpatient hospital services and physician services.
( ii ) *Plans providing MV to employees.* If an eligible employer-sponsored plan provides MV to an employee under paragraph (a)(1) of this section, the plan also provides MV for related individuals if— ( A ) The scope of benefits is the same for the employee and related individuals; and
( B ) Cost sharing (including deductibles, co-payments, coinsurance, and out-of-pocket maximums) under the plan is the same for the employee and related individuals under the tier of coverage that would, if elected, include the employee and all related individuals (disregarding any differences in deductibles or out-of-pocket maximums that are attributable to a different tier of coverage, such as self plus one versus family coverage).
( b ) *MV standard population.* [Reserved]
( c ) *MV percentage* — ( 1 ) *In general.* [Reserved]
( 2 ) *Wellness program incentives* — ( i ) *In general.* Nondiscriminatory wellness program incentives offered by an eligible employer-sponsored plan that affect deductibles, copayments, or other cost-sharing are treated as earned in determining the plan's MV percentage if the incentives relate exclusively to tobacco use. Wellness program incentives that do not relate to tobacco use or that include a component unrelated to tobacco use are treated as not earned for this purpose. For purposes of this section, the term *wellness program incentive* has the same meaning as the term *reward* in § 54.9802-1(f)(1)(i) of this chapter.
( ii ) *Example.* The following example illustrates the rules of this paragraph (c)(2): Example. (i) Employer X offers an eligible employer-sponsored plan that reduces the deductible by $300 for employees who do not use tobacco products or who complete a smoking cessation course. The deductible is reduced by $200 if an employee completes cholesterol screening within the first six months of the plan year. Employee B does not use tobacco and his deductible is $3,700. Employee C uses tobacco and her deductible is $4,000. (ii) Under paragraph (c)(2)(i) of this section, only the incentives related to tobacco use are considered in determining the plan's MV percentage. C is treated as having earned the $300 incentive for attending a smoking cessation course regardless of whether C actually attends the course. Thus, the deductible for determining for the MV percentage for both Employees B and C is $3,700. The $200 incentive for completing cholesterol screening is disregarded.
( 3 ) *Employer contributions to health savings accounts.* Employer contributions for the current plan year to health savings accounts that are offered with an eligible employer-sponsored plan are taken into account for that plan year towards the plan's MV percentage.
( 4 ) *Employer contributions to health reimbursement arrangements.* Amounts newly made available for the current plan year under a health reimbursement arrangement that would be integrated within the meaning of Notice 2013-54 (2013-40 IRB 287), see § 601.601(d) of this chapter, with an eligible employer-sponsored plan for an employee enrolled in the plan are taken into account for that plan year towards the plan's MV percentage if the amounts may be used to reduce only cost-sharing for covered medical expenses. A health reimbursement arrangement counts toward a plan's MV percentage only if the health reimbursement arrangement and the eligible employer-sponsored plan are offered by the same employer. Employer contributions to a health reimbursement arrangement count for a plan year towards the plan's MV percentage only to the extent the amount of the annual contribution is required under the terms of the plan or otherwise determinable within a reasonable time before the employee must decide whether to enroll in the eligible employer-sponsored plan.
( 5 ) *Expected spending adjustments for health savings accounts and health reimbursement arrangements.* [Reserved]
( d ) *Methods for determining MV.* [Reserved]
( e ) *Scope of essential health benefits and adjustment for benefits not included in MV Calculator.* [Reserved]
( f ) *Actuarial certification.* [Reserved] ( 1 ) *In general.* [Reserved]
( 2 ) *Membership in American Academy of Actuaries.* [Reserved]
( 3 ) *Actuarial analysis.* [Reserved]
( 4 ) *Use of MV Calculator.* [Reserved]
( g ) *Effective/applicability date—in general.* ( 1 ) Except as provided in paragraph (g)(2) of this section, this section applies for taxable years ending after December 31, 2013.
( 2 ) *Exceptions.* ( i ) Paragraph (a)(1)(ii) of this section applies for plan years beginning after November 3, 2014; and
( ii ) Paragraph (a)(2) of this section applies to taxable years beginning after December 31, 2022.
[T.D. 9745, 80 FR 78976, Dec. 18, 2015, as amended by T.D. 9968, 87 FR 62002, Oct. 13, 2022]