50+ Full Time Employees? Solutions to your benefits needs
“I have 50 employees and now I have mandatory benefits to provide!?!”
If you've recently reached the milestone of having 50 employees, its crucial to understand the benefits your business must provide, including ACA-compliant health coverage.
A MEC maybe your solution for this year.
MEC, or Minimum Essential Coverage, is a type of health plan that meets the requirements set by the Affordable Care Act (ACA). Understanding MEC can be a bit tricky, especially when compared to other terms like minimum value, essential health benefits, and actuarial value. Let's break it down to make it easier to grasp.
What is MEC and What Does it Cover?
MEC includes various health coverage options that comply with ACA standards. These options consist of:
Marketplace plans
Job-based plans
Medicare
Medicaid
For large employers with 50 or more full-time or equivalent employees, providing ACA-compliant health coverage is mandatory. Failure to do so may result in fines and penalties imposed by the Internal Revenue Service.
Minimum Essential Coverage Option Levels Available
There are three levels of MEC plans, each catering to different needs:
Standard MEC plans: Compliant with ACA, covering wellness, preventative services, prescription discounts, and telehealth services.
Enhanced MEC plans: Go beyond standard plans, including primary and urgent care visits with low copays, discounted specialist and laboratory services.
Highest-level MEC plans: Include enhanced MEC plan benefits along with added coverage such as prescription coverage and low copays.
MEC Plans with Hospital Indemnity
Worksite MEC plans aim to offer affordable healthcare coverage. Plans with hospital indemnity coverage help offset high deductibles and out-of-pocket expenses, preventing emergencies from turning into financial crises. They cover 10 health benefits, including outpatient services, emergency services, hospital visits, and more.
Saving with MEC
Large employers failing to provide 95% of full-time employees with ACA-compliant benefits face substantial fines. Employers can use a calculator to determine potential savings by offering MEC coverage while staying compliant with federal regulations.
Difference Between MEC and Minimum Value
Minimum value is a higher threshold than MEC, requiring a plan to pay 60% of the actuarial value of allowed benefits. Employers meeting MEC requirements but not minimum value still fulfill ACA employer requirements.
MEC and Essential Health Benefits
Essential health benefits are core benefits that qualified health plans must cover, and MEC has a lower threshold than these benefits. If a group health plan falls short of providing all essential health benefits, it likely still meets Minimum Essential Coverage, ensuring ACA compliance.
Why Understanding the Differences Matters
Large employers must comprehend the distinctions between MEC, minimum value, and essential health benefits to fulfill legal obligations and offer the best coverage options to employees. Offering health insurance promotes a healthier and more productive workforce, ultimately benefiting both employees and employers.
