MEC insurance plans are a type of health coverage that you may need if you're looking for affordable options to meet the minimum essential coverage requirements under the Affordable Care Act. A fine could be imposed by the government on those who do not meet MEC requirements. You may not be sure if your insurance plan meets MEC's requirements. Here is a quick guide for you to understand what's covered and what's not.
What is MEC
MEC was the minimum essential cover required of all individuals when the Affordable Care act came into effect in 2010. If you don't have a plan that meets these requirements or if your policy is grandfathered in, you may be fined on your federal tax return.
You can contact your insurance company if in doubt about whether your plan meets ACA requirements. Many insurance companies will have an easy-to-use tool that can tell you if your policy meets the ACA MEC requirements.
What is minimum health insurance?
MEC, or minimum essential coverage, is the cheapest type of health insurance that you can buy. It's available through your employer, or directly from an insurer. You can use it to pay for services in network or out of network. The plan also covers prescriptions, preventative care, like flu shots, immunizations and other routine examinations.
MEC's rules have an actuarial factor of 60% along with a few other requirements. Most commonly, the plan has to cover all major medical costs including hospitalization and physician services. It also needs to provide essential benefits such as prescription drugs and mental healthcare.
What makes MEC insurance different?
Although the ACA stipulates that all people must have minimum essential coverage, that doesn't mean that this applies to every form of healthcare. For example, some plans that meet the MEC standards do not provide dental benefits for children, so you should make sure to ask if your policy covers adult dental care as well.
What Is MEC Still Required?
You must have a health insurance plan that meets ACA MEC standards if you work for a large organization. If you are not able find a health insurance plan that meets MEC guidelines, you could be eligible for an HDHP (high deductibility health plan).
HDHPs are available in many different forms. Some HDHPs have lower deductibles while others have higher deductibles.
To avoid confusion, you should take your sweet time to select the HDHP that is right for you. A professional can also help you to understand your options before you sign up.
What's the MEC Reference Diagram?
The MEC Reference Chart provides a quick tool for identifying all types of coverage that fall under MEC. The chart also tells you if those types of coverage make you ineligible to receive premium tax credits.