MEC plans are affordable health insurance that may be needed to meet the Affordable Care Act's minimum coverage requirements. MEC is mandatory and if it's not in place, the government may fine you. Here's an overview of what you can expect from your MEC plan.
What is the MEC?
MEC was the minimum essential cover required of all individuals when the Affordable Care act came into effect in 2010. If your health plan did not meet these requirements, you might be subject to a fine when filing your federal income taxes.
You can ask your insurance provider if you are unsure if your policy meets the ACA's MEC requirements. Most insurance companies provide an easy-to -use tool to determine if your policy meets ACA MEC requirements.
What is Minimum Health Insurance?
The cheapest health insurance is MEC or minimum essential coverage. 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.
The MEC rules include an actuarial value of 60% and a number of other requirements. Some of the most common requirements are that a plan must cover major medical expenses, such as inpatient hospitalizations and physician's services, and must include essential health benefits, like prescription drugs, mental health care, and other essential health benefits.
How is MEC different from other types of insurance?
The ACA mandates that everyone has minimum essential coverage. However, this does not cover all health care. 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 the MEC still required?
If you are an employee of a large company, you must be offered a health plan that meets the ACA's MEC standards. You may qualify for a HDHP if you are unable to find a policy that meets MEC's standards.
HDHPs can be chosen from many options. Some have lower or 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's an MEC Reference Table?
The MEC Reference Chart acts as a quick reference guide that lists the types of coverage which are MEC. It also explains how you can get premium tax credits if your coverage is MEC.