Small employers, typically defined as businesses with fewer than 50 full-time equivalent (FTE) employees, are generally not required to purchase health coverage for their employees. The employer mandate applies to larger employers, and these companies sometimes purchase “MEC plans,” sometimes referred to as “skinny plans” because they cover only the…
MEC Plans
Minimum Essential Coverage (MEC) plans are health insurance plans that meet the Affordable Care Act’s requirement for health coverage. While any group health plan is considered to be an “MEC plan” for purposes of the employer mandate, this term is usually used when referring t a “skinny plan” that helps Applicable Large Employers avoid an across-the-board penalty for not offering coverage to their employees, but the availability of these plans does not block employees from waiving group coverage and applying for a premium tax credit in the individual market.
What is an MEC plan?
MEC stands for “Minimum Essential Coverage.” Any employer-sponsored group health insurance plan provides minmum essential coverage, but normally when people mention MEC plans, they are referring to skinny plans that applicable large employers (ALEs) can offer to avoid the across-the-board penalty under section the employer mandate (the 4980H (a) penalty)….