blue markerPlan A: Self–Funded Minimum Essential Coverage (MEC)

  • Minimum Essential Coverage (MEC) will cover 100% of the 63 CMS listed preventive services.
  • The MEC coverage is self-funded with an aggregate only policy with a monthly aggregate
    accommodation provision.
  • By only offering the MEC, employers can prevent being taxed $2,000 per full-time employee.
    Employers employing 50 to 99 employees will be exposed to this penalty tax starting 1/1/2016 for
    all full-time employees, less 30. Employers employing 100 or more employees will be exposed to
    this penalty tax starting 1/1/2015 for all full-time employees, less 80 for 2015 only, then less 30
    thereafter.
  • Employees were subjected to the individual penalty tax on 1/1/2014. All employees can prevent
    paying the individual penalty tax by purchasing the MEC coverage.
  • All employees can prevent being taxed the greater of the $95 penalty or 1% of adjusted household income by purchasing the MEC only plan.
  • The employee penalty progresses over a three year period. In 2014, it is the greater of 1% of adjusted household income or $95 per adult plus $47.50 per child; in 2015, it is the greater of 2% of adjusted household income or $325 per adult plus $162.50 per child; thereafter the greater of 2.5% of adjusted household income or $695 per adult plus $347.50 per child.
  • Employers can charge employees any reasonable amount for the MEC.
This can be accomplished at surprisingly affordable costs to both employees and employers!