The minimum value standard refers to a standard of minimum coverage that applies to job-based health plans. If you are offered a job-based plan from your employer, and that plan meets this standard, you won’t be eligible for a premium tax credit if you buy a Marketplace insurance plan instead.
A health plan meets the minimum value standard if both of these apply:
- It’s designed to pay at least 60% of the total cost of medical services for a standard population
- Its benefits include substantial coverage of physician and inpatient hospital services
Employees can learn whether their health plan meets minimum value by requesting a Summary of Benefits and Coverage (SBC) from their employer. You can also ask them to fill out the Employer Coverage Tool (PDF).