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. You could be fined by the government if you do not have MEC. Here's an overview of what you can expect from your MEC plan.
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.
You can ask your insurance provider if you are unsure if your policy meets the ACA's MEC requirements. 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?
Minimum essential coverage (MEC) is the most affordable type of health insurance you can purchase. It's available through your employer, or directly from an insurer. It includes medical benefits that can be used to pay for in-network or out-of-network services. The plan also covers prescriptions, preventative care, like flu shots, immunizations and other routine examinations.
MEC regulations include an actuarial rate of 60% as well as a number other requirements. 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?
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. Some plans that meet MEC standards don't cover dental care for children. You should ask your insurance provider if it covers dental coverage for adults as well.
What does MEC still require?
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 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 offer lower deductibles, others have higher ones.
Choosing the right HDHP can be complicated and confusing, so you need to take your time when choosing one. 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 can be used as a quick guide to help you identify all types MEC coverage. It also explains how you can get premium tax credits if your coverage is MEC.