MEC health plans may be the best option for you if you want to find affordable coverage options that meet the Affordable Health Care Act requirements. The government could fine you if you don't carry MEC. Here's a guide that will help you determine if your plan is MEC-compliant.
What Is MEC?
MEC coverage (minimum essential coverage) became mandatory in 2010 when the Affordable care Act was implemented. It required that individuals obtain and maintain insurance that met certain criteria. 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 are unsure if a plan meets ACA MEC, you should check with your insurance agent. Most insurance companies have a simple tool to tell you if the policy you're using meets ACA MEC standards.
What is Minimum Health Insurance?
MEC, or minimum essential coverage, is the cheapest type of health insurance that you can buy. You can get it through your employer or directly from the insurer. It covers in-network and out-of-network medical services. Preventive services such as immunizations and flu shots, as well routine exams and prescriptions are also covered.
The MEC rules include an actuarial value of 60% and a number of other requirements. These include the requirement that the plan cover all major health costs, including inpatient services at hospitals and physicians, as well as essential health care benefits like prescription medication and mental health.
How is MEC different from other types of insurance?
While the ACA requires that most people have at least minimum essential coverage, it's important to remember that it doesn't apply to all types of health care. As an example, certain plans that meet MEC requirements do not cover dental benefits for kids. Therefore, you should check if the policy also covers adult dental services.
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 come in a wide range of options. 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. It's also a good idea to have an expert explain your options, so you know exactly what you're getting into before signing up.
What is a MEC Reference chart?
The MEC Reference Chart is a quick reference tool that lists all of the various types of coverage that are considered MEC. It also explains whether or not you are eligible for premium tax credit if you have these types of coverage.