MEC is a type health coverage you might need if you are looking for an affordable option to meet minimum essential coverage under the Affordable care Act. 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 and what does it do?
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 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. 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?
Minimum essential coverage (MEC) is the most affordable type of health insurance you can purchase. This insurance is available directly through an insurer or your employer. It covers in-network and out-of-network medical services. This includes preventative services, such as flu shots, immunizations or other routine exams as well as prescriptions.
MEC regulations include an actuarial rate of 60% as well as a number other requirements. Most commonly, the plan has to cover all major medical costs including hospitalization and physician services. It also needs to provide essential benefits such as prescription drugs and mental healthcare.
What is the difference between MEC and other insurance types?
The ACA mandates that everyone has minimum essential coverage. However, this does not cover all 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 is the MEC still required?
If you work for a major employer, they are required to provide you with a plan that meets ACA standards. You may qualify for a HDHP if you are unable to find a policy that meets MEC's standards.
You can choose from a variety of HDHPs. Some HDHPs offer lower deductibles; others have high ones.
It can be confusing and difficult to choose the best HDHP, so take your time. A professional can also help you to understand your options before you sign up.
What's a MEC Reference Chart?
The MEC Reference Chart serves as a quick-reference tool, listing all the different types of coverages that are MEC. It also explains if being eligible for those types of coverage makes you ineligible for premium tax credits in the marketplace.