MEC plans are affordable health insurance that may be needed to meet the Affordable Care Act's minimum coverage requirements. The government could fine you if you don't carry MEC. Here's an overview of what you can expect from your MEC plan.
What Is MEC?
MEC (or minimum essential coverage) was required by the Affordable Care Act in 2010. It required all individuals to obtain and maintain policies that met certain requirements. If your health plan did not meet these requirements, you might be subject to a fine when filing your federal income taxes.
You can contact your insurance company if in doubt about whether your plan meets ACA requirements. Many insurance providers have an easy to use tool which can tell you if you policy meets the ACA MEC criteria.
What is Minimum Health Insurance?
MEC (or minimum essential coverage) is the cheapest form of health insurance. 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. Preventive services such as immunizations and flu shots, as well routine exams and prescriptions are also covered.
MEC rules stipulate an actuarial percentage of 60%. They also include a variety 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 does MEC differ from other insurances?
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. 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 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 HDHPs have lower deductibles while others have higher deductibles.
It can be confusing and difficult to choose the best HDHP, so take your time. 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 the MEC Reference Chart (Richardson, et al.
The MEC Reference Chart serves as a quick-reference tool, listing all the different types of coverages that are MEC. It also explains whether or not you are eligible for premium tax credit if you have these types of coverage.