Minimum value is a standard used to evaluate whether an employer-sponsored health plan provides sufficient coverage to disqualify an employee from receiving Premium Tax Credits on the ACA Marketplace. A plan meets minimum value if it’s designed to pay at least 60% of the total cost of benefits for a standard population — the same actuarial threshold as a Bronze plan.
Under ACA rules, if your employer offers a plan that meets both minimum value AND the affordability standard, you generally cannot receive a Premium Tax Credit on the Marketplace — even if a Marketplace plan might cost less after subsidies.
If the employer plan fails the minimum value test (pays less than 60% of average costs), you may be eligible for Marketplace subsidies regardless of the plan’s premium cost.
How minimum value is assessed:
Ask your HR department or benefits administrator. They can confirm whether the plan is certified as meeting minimum value. You can also look at your plan’s Summary of Benefits and Coverage (SBC) — it must state whether the plan meets minimum value. If the SBC says it does not, you may be eligible for Marketplace subsidies.
Yes — minimum value (60% actuarial coverage) and affordability (your self-only premium doesn’t exceed a set percentage of household income) are two separate tests. A plan can be affordable but not meet minimum value, or vice versa. You need the employer plan to pass both tests to be ineligible for Marketplace subsidies.
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