HHS has released seven pages of FAQs on its December 16, 2011 bulletin describing the approach the Administration intends to take in future rulemaking to define ACA essential health benefits (EHBs). In the December Bulletin, HHS explained that it intends to give states the flexibility to select one of four types of benchmark plans that reflect the scope of services offered by a typical employer plan. While a plan could modify coverage within a benefit category, it could not reduce the value of coverage. The new EHB FAQs clarify, among other things, that if a state chooses a benchmark plan that does not include all state-mandated benefits, the ACA “would require the State to defray the cost of those mandated benefits in excess of EHB as defined by the selected benchmark.” Moreover, any state-mandated benefits enacted after December 31, 2011 could not be part of EHB for 2014 or 2015.