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. You may not be sure if your insurance plan meets MEC's requirements. Here is a quick guide for you to understand what's covered and what's not.
What is MEC?
MEC was the minimum essential cover required of all individuals when the Affordable Care act came into effect in 2010. You could be penalized if you didn't have the right health insurance or your policy wasn't grandfathered.
You can ask your insurance provider if you are unsure if your policy meets the ACA's MEC 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?
The cheapest health insurance is MEC or minimum essential coverage. You can buy it directly from an insurance company or through your employer. 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.
MEC regulations include an actuarial rate of 60% as well as a number other requirements. The most common ones are that the plan must cover a full range of major medical costs, including inpatient hospital and physician services, and that it must provide essential health benefits like prescription drugs and mental health care.
What makes MEC insurance different?
It's important to note that the ACA does not apply to every type of health insurance. Many plans that are MEC-compliant do not offer dental coverage to children. Ask if your plan covers dental treatment for adults.
What is the MEC still required?
You must have a health insurance plan that meets ACA MEC standards if you work for a large organization. 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 HDHPs offer lower deductibles; others have high ones.
To avoid confusion, you should take your sweet time to select the HDHP that is right for you. You should also have a professional explain your options so that you understand what you are getting into.
What's the MEC Reference Diagram?
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 how you can get premium tax credits if your coverage is MEC.