Minimum Essential Coverage (MEC) Plans
Minimum Essential Coverage plans (MEC plans) allow companies to cost-effectively provide employees with health insurance required under the Affordable Care Act (ACA). MEC plans give plan members access to preventative healthcare services as well as screenings and other programs that encourage health and wellness.
Offer the Most Basic Benefits
MEC plans offer only the most basic level of benefits required under ERISA and while some may view them unfavorably, others view MECs as a viable alternative to sending employees to public Marketplaces.
MEC Plans Are Extremely Affordable
Since MEC plans cover only certain wellness and preventive services, many employers fund the entire cost even though this is not required. Simply offering a MEC satisifies the ALE's obligation to offer coverage, as well as the individual mandate that can penalize employees who do not have coverage.
Some Prefer a Combined Approach
Employers wishing to furnish more coverage may supplement a MEC with a Limited Medical Benefit plan. This can provide additional, restricted coverage for routine doctor visits and hospitalization, while still costing far less than a traditional health plan. Some employers pursue a combined option to keep workers from accessing a public Marketplace.
As you weigh your options, Minimum Essential Coverage plans should be considered. To find out if MEC may be a cost-effective option for your company, or if you have any questions, contact EBSO today.