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. 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 MEC?
MEC coverage (minimum essential coverage) became mandatory in 2010 when the Affordable care Act was implemented. It required that individuals obtain and maintain insurance that met certain criteria. If your health plan did not meet these requirements, you might be subject to a fine when filing your federal income taxes.
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.
MEC (or minimum essential coverage) is the cheapest form of health insurance. It's available through your employer, or directly from an insurer. It covers in-network and out-of-network medical services. The plan also covers prescriptions, preventative care, like flu shots, immunizations and other routine examinations.
MEC rules require an actuarial valuation of 60%, among other things. 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 makes MEC insurance different?
It's important to note that the ACA does not apply to every type of health insurance. As an example, certain plans that meet MEC requirements do not cover dental benefits for kids. Therefore, you should check if the policy also covers adult dental services.
What Is MEC Still Required?
If you work at a big company, your employer must offer you a policy of health insurance that meets ACA requirements. 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 offer lower deductibles, others have higher ones.
It is important to be patient when selecting the HDHP. To make sure you fully understand the options available, it's a good idea for you to speak with an expert before signing up.
What is the MEC Reference Chart (Richardson, et al.
The MEC Reference Chart provides a quick tool for identifying all types of coverage that fall under MEC. It also explains if being eligible for those types of coverage makes you ineligible for premium tax credits in the marketplace.