MEC health plans may be the best option for you if you want to find affordable coverage options that meet the Affordable Health Care Act 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 (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.
Check with your insurer if you're unsure if the plan you have meets ACA MEC standards. Many insurance companies will have an easy-to-use tool that can tell you if your policy meets the ACA MEC requirements.
What is Minimum Health Insurance (MHI)?
MEC, or minimum essential coverage, is the cheapest type of health insurance that you can buy. It's available through your employer, or directly from an insurer. The plan includes medical benefits which can be used for out-of network or in-network care. It also covers preventative services like immunizations, flu shots and other routine exams, as well as prescriptions.
MEC rules stipulate an actuarial percentage of 60%. They also include a variety of other requirements. 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.
How is MEC different from other types of insurance?
The ACA mandates that everyone has minimum essential coverage. However, this does not cover all health care. 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 the MEC still required?
If you are an employee of a large company, you must be offered a health plan that meets the ACA's MEC standards. If you cannot find a plan which meets MEC standards you may be able to qualify for a type of health insurance known as a High Deductibility Health Plan (HDHP).
There are many HDHPs to choose from. Some have lower or higher deductibles.
It is important to be patient when selecting the HDHP. You should also have a professional explain your options so that you understand what you are getting into.
What is a MEC Reference chart?
The MEC Reference Chart serves as a quick-reference tool, listing all the different types of coverages that are MEC. The chart also tells you if those types of coverage make you ineligible to receive premium tax credits.