MEC insurance plans are a type of health coverage that you may need if you're looking for affordable options to meet the minimum essential coverage requirements under the Affordable Care Act. A fine could be imposed by the government on those who do not meet MEC requirements. 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 the 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. If you don't have a plan that meets these requirements or if your policy is grandfathered in, you may be fined on your federal tax return.
If you're not sure if your plan meets the ACA MEC requirements, you can check with your insurance company. Many insurance providers have an easy to use tool which can tell you if you policy meets the ACA MEC criteria.
Minimum Health Insurance: What does it mean?
Minimum essential coverage (MEC) is the most affordable type of health insurance you can purchase. You can get it through your employer or directly from the insurer. It covers in-network and out-of-network medical services. Preventive services such as immunizations and flu shots, as well routine exams and prescriptions are also covered.
MEC regulations include an actuarial rate of 60% as well as a number other requirements. These include the requirement that the plan cover all major health costs, including inpatient services at hospitals and physicians, as well as essential health care benefits like prescription medication and mental health.
What makes MEC Insurance different from other types insurance?
Although the ACA stipulates that all people must have minimum essential coverage, that doesn't mean that this applies to every form of healthcare. 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'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 can't find a health plan that meets MEC requirements, you may be eligible for high-deductible health plans (HDHPs).
HDHPs are available in many different forms. 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'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.