“Minimum value” health insurance plans that don’t cover hospitalization won’t pass muster, the IRS announced today, reported Staffing Industry Analysts’ sister publication Business Insurance.

The IRS will propose regulations to this affect shortly, Business Insurance reported.

In the staffing industry, the plans had been seen as a lower cost way to offer health insurance and avoid penalties under the Affordable Care Act. For background, click here.

However, Kaiser Health News reported the administration will allow it temporarily under health reform law for employers that have committed to it as of Nov. 4.