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. If you don't have MEC, you could face a fine from the government. Here's an overview of what you can expect from your MEC plan.
What is MEC
When the Affordable Care Act was introduced in 2010, MEC, or minimum essential coverage, required that all individuals get and maintain a policy that met specific 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. Most insurance companies have a simple tool to tell you if the policy you're using meets ACA MEC standards.
What is Minimum Health Insurance (MHI)?
MEC, or minimum essential coverage, is the cheapest type of health insurance that you can buy. 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. 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. Most commonly, the plan has to cover all major medical costs including hospitalization and physician services. It also needs to provide essential benefits such as prescription drugs and mental healthcare.
How does MEC differ from other insurances?
It's important to note that the ACA does not apply to every type of health insurance. If you're looking for a plan that meets the MEC standard, but does not include dental coverage for children, then make sure to check whether your policy includes adult dental care.
What Is MEC Still Required?
You must have a health insurance plan that meets ACA MEC standards if you work for a large organization. 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 HDHPs offer lower deductibles; others have high ones.
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 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.