Minimum Value

Going hand-in-hand through the ACA regulations with Minimum Essential Coverage (MEC), which we posted about earlier this week, is Minimum Value (MV). 

What is Minimum Value?
Healthcare plans meet a Minimum Value (MV) if they’re designed to pay for at least 60% of the total cost of medical services for a standard population, according to the Affordable Care Act (ACA). This minimum standard is the equivalent of a Bronze plan sold on the Health Insurance Marketplace. The plan’s benefits must also include a substantial amount of any inpatient hospital and physician services necessary.

In order to remain completely compliant with the ACA, the healthcare plan you as an employer offer your employee(s) must offer both Minimum Essential Coverage and meet the Minimum Value allowed. If the plan you offer doesn’t meet MEC or MV standards, you might have to pay an employer shared responsibility payment.

An employer shared responsibility payment is incurred when their employee receives a premium tax credit when purchasing additional insurance from the Marketplace. Since the employee would only receive this tax credit if their existing insurance didn’t meet MEC or MV guidelines, this could launch an IRS investigation into your coverage offers and you could end up paying out of pocket for each full-time employee considered under-covered.

However, just because an employee seeks additional insurance from the Marketplace doesn’t mean he/she will automatically receive the premium tax credit. If the insurance you provide meets MEC and MV, the employee will still be able to purchase additional coverage but they won’t be eligible for the credit.

The clock is ticking to get your ACA forms e-filed! The deadline is June 30, so be sure to sign up with ExpressIRSForms to complete your ACA filing today. And if you have any questions, our customer support team is happy to help! Give us a call Monday through Friday, 9:00 a.m. to 6:00 p.m. EDT, at (704) 684-4751 or send us an email anytime at support@ExpressIRSForms.com.

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Minimum Essential Coverage

When we talk about the Affordable Care Act (ACA), the phrase “Minimum Essential Coverage” gets thrown around a lot, and it’s an important one. As an employer, you’ll need to keep Minimum Essential Coverage (MEC) in mind when providing your employees with health insurance. In this post, we’ll dive into why that is.

What is Minimum Essential Coverage?
Minimum Essential Coverage, or MEC, is the phrase used to describe the type of healthcare coverage you’ll need to provide to applicable employees in order to stay compliant with the ACA. It’s pretty straightforward in its definition as it applies to any coverage that offers at least the minimum amount of benefits required to be had by all American taxpayers.

MEC usually goes hand in hand with Minimum Value (MV), meaning the coverage you offer pays for at least 60% of the total allowed cost of benefits under the plan.

What Types of Health Insurance are Considered MEC?
For the most part, all Government and job-based insurance, as well as most private insurance, meet MEC requirements. This includes:

• Employer-sponsored coverage
• COBRA and retiree coverage
• Medicare Part A & Medicare Advantage coverage
• Most Medicaid coverage
• Children’s Health Insurance Program (CHIP) coverage
• Some types of Veterans Administration coverage
• TRICARE
• Coverage provided under the Peace Corps
• Coverage under the Non-appropriated Fund Health Benefit Program
• Refugee Medical Assistance (supported by Administration for Children and Families)

What Doesn’t Count as MEC?

• Plans that provide limited benefits typically don’t qualify as MEC, such as:
• Short Term Health Plans
• Fixed Benefit Health Plans
• Supplemental Medicare (Part D, Medigap)
• Some Medicaid
• Vision-only, Dental-only, and other limited benefit plans
• Grandfathered plans

So now that you know about MEC, get ready to e-file your ACA forms with ExpressIRSForms! All you need to do is create an account and you’re on your way. If you need any help with the process, don’t hesitate to contact our customer support team in Rock Hill, SC. We’re available by phone Monday through Friday, 9:00 a.m. to 6:00 p.m. EDT, at (704) 684-4751. If you can’t get us then, we offer 24/7 email assistance at support@ExpressIRSForms.com.



Looking for something a little less hands on? Try ExpressACAForms, our full-service ACA e-filing solution!

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