MEC plans are affordable health insurance that may be needed to meet the Affordable Care Act's minimum coverage requirements. A fine could be imposed by the government on those who do not meet MEC requirements. 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 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 contact your insurance company if in doubt about whether your plan meets ACA requirements. 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?
MEC (or minimum essential coverage) is the cheapest form of health insurance. You can buy it directly from an insurance company or through your employer. It includes medical benefits that can be used to pay for in-network or out-of-network 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 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 is the difference between MEC and other insurance types?
Although the ACA stipulates that all people must have minimum essential coverage, that doesn't mean that this applies to every form of healthcare. 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 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. 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 HDHPs have lower deductibles while others have higher deductibles.
Choosing the right HDHP can be complicated and confusing, so you need to take your time when choosing one. 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's the MEC Reference Diagram?
The MEC Reference Chart acts as a quick reference guide that lists the types of coverage which are MEC. It also explains how you can get premium tax credits if your coverage is MEC.