MEC plans can be a good option if your budget is tight and you need to satisfy the Affordable Care act's requirements for minimum essential coverage. You could be fined by the government if you do not have MEC. 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 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. You could be penalized if you didn't have the right health insurance or your policy wasn't grandfathered.
You can contact your insurance company if in doubt about whether your plan meets ACA requirements. Many insurance companies offer an easy-to use tool that will tell you if your plan meets the ACA MEC requirement.
What is minimum health insurance?
MEC, or minimum essential coverage, is the cheapest type of health insurance that you can buy. You can buy it directly from an insurance company or through your employer. This plan covers medical services that are available in or outside of the network. This includes preventative services, such as flu shots, immunizations or other routine exams as well as prescriptions.
MEC rules stipulate an actuarial percentage of 60%. They also include a variety of 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.
How does MEC differ from other insurances?
Remember that while the ACA requires most people to have at least minimal essential coverage, this doesn't cover all types of medical 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'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).
There are many HDHPs to choose from. Some have lower deductibles and others higher.
Choosing the HDHP is a difficult and confusing process. You should therefore take your time. Also, you should have an expert walk you through your options to ensure you know what you're signing up for.
What's 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.