MEC plans can be a good option if your budget is tight and you need to satisfy the Affordable Care act's requirements for minimum essential coverage. If you don't have MEC, you could face a fine from the government. 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 the MEC?
When the Affordable Care Act was introduced in 2010, MEC, or minimum essential coverage, required that all individuals get and maintain a policy that met specific requirements. 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.
If you're not sure if your plan meets the ACA MEC requirements, you can check with your insurance company. 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 (MHI)?
Minimum essential coverage (MEC) is the most affordable type of health insurance you can purchase. It can be purchased through your company or directly by an insurer. You can use it to pay for services in network or out of network. This includes preventative services, such as flu shots, immunizations or other routine exams as well as prescriptions.
MEC rules require an actuarial valuation of 60%, among other things. The most common ones are that the plan must cover a full range of major medical costs, including inpatient hospital and physician services, and that it must provide essential health benefits like prescription drugs and mental health care.
How is MEC different from other types of insurance?
Although the ACA stipulates that all people must have minimum essential coverage, that doesn't mean that this applies to every form of healthcare. If you're looking for a plan that meets the MEC standard, but does not include dental coverage for children, then make sure to check whether your policy includes adult dental care.
What Is MEC Still Required?
If you're an employee at a large employer, your employer is required to offer you a health insurance policy that meets the ACA MEC requirements. If you can't find a health plan that meets MEC requirements, you may be eligible for high-deductible health plans (HDHPs).
You can choose from a variety of HDHPs. Some HDHPs have lower deductibles while others have higher deductibles.
It is important to be patient when selecting the HDHP. Also, you should have an expert walk you through your options to ensure you know what you're signing up for.
What's a MEC Reference Chart?
The MEC Reference Chart can be used as a quick guide to help you identify all types MEC coverage. It also explains if being eligible for those types of coverage makes you ineligible for premium tax credits in the marketplace.