blue markerPlan B: MEC & Fully Insured Limited Medical Plan

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.
  • The employee penalty tax progresses over a three-year period. In 2014, it is the greater of 1% of
    modified adjusted household income or $95 per adult plus $47.50 per child; in 2015, it is the
    greater of 2% of modified adjusted household income or $325 per adult plus $162.50 per child;
    thereafter the greater of 2.5% of modified adjusted household income or $695 per adult plus
    $347.50 per child.
  • Employers can charge employees any reasonable amount for the MEC.

 

Fully Insured Limited Medical Plan

  • The Fully Insured Limited Medical benefits are provided on an indemnity platform and constructed
    to be exempt from the ACA rules.
  • The Fully Insured Limited Medical benefits by themselves or in combination with the MEC do not
    qualify as an affordable Minimum Value Plan.
  • There are six Fully Insured Limited Medical benefit structures which KBA has designed to fit into
    Plan B.

 

This can be accomplished at surprisingly affordable costs to both employees
and employers!