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. If you're not sure whether your plan meets MEC requirements, here's a quick guide to help you understand what is and isn't covered.
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.
If you are unsure if a plan meets ACA MEC, you should check with your insurance agent. Many insurance companies will have an easy-to-use tool that can tell you if your policy meets the ACA MEC requirements.
Minimum Health Insurance: What does it mean?
The cheapest health insurance is MEC or minimum essential coverage. This insurance is available directly through an insurer or your employer. You can use it to pay for services in network or out of network. It covers services like routine exams, flu shots, and immunizations.
The MEC rules include an actuarial value of 60% and a number of other requirements. The plan's most important requirements include that it cover a wide range of medical costs (including inpatient hospital services and physician care) and provide essential health coverage, like prescription medications and mental health treatment.
What is the difference between MEC and other insurance types?
It's important to note that the ACA does not apply to every type of health insurance. 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 still requires MEC?
If you are an employee of a large company, you must be offered a health plan that meets the ACA's MEC standards. If you're not able to find a plan that meets MEC standards, you might be eligible for a special kind of health insurance called a high deductibility health plan (HDHP).
HDHPs are available in many different forms. Some have lower deductibles and others higher.
To avoid confusion, you should take your sweet time to select the HDHP that is right for you. Also, you should have an expert walk you through your options to ensure you know what you're signing up for.
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 if being eligible for those types of coverage makes you ineligible for premium tax credits in the marketplace.