Minimum Essential Coverage is required for large employers.

For large employers, MEC provides an affordable solution to a potential business crippling dilemma, the Affordable Care Act’s Employer Mandate. A significant barrier for many employers is access to affordable medical policies they need in order to meet these requirements, but Flyte HCM is making Part A compliance affordable.

There are thousands of Applicable Large Employers (Employers with more than 50 Full-time Equivalent employees) who own and operate successful businesses in which offering health coverage could mean they’d have to pay close their doors for good. The Employer Mandate’s requirement that they offer health coverage, or potentially face a penalty of thousands of dollars per year per full-time employee, made many of these employers feel as if they had no other options left.

In comes MEC to the rescue, in the right circumstances.

ACA compliance is affordable.

MEC Plans (Minimum Essential Coverage) are a unique benefit offering tailored to employers seeking affordable refuge from the Employer Mandate. They offer Minimum Essential Coverage to all eligible full-time employees working more than 30 hours per week. Simply offering a MEC plan satisfies the first part of the Mandate, which saves thousands of dollars per full-time employee per year.

Is MEC the golden parachute we hoped for? Nope. But it has been a source of business salvation for employers in all 50 states who needed relief from the “sledgehammer” penalties. Let’s take a closer look at why MEC works, and why it may not.

Where is MEC a good fit?

MEC (Minimum Essential Coverage) has a variety of uses, but most importantly as a compliance vehicle for Applicable Large Employers with no access to Minimum Value Coverage. Or if they do have access, cannot maintain it due to cost and/or participation problems.

Here’s a quick list of attributes we see in most of our clients using MEC to mitigate their Part A Employer Mandate risk:

  • Majority of workforce is hired at entry level positions.
  • The company didn’t offer benefits to all or a portion of the workforce prior to the Employer Mandate.
  • Has unsuccessfully explored offering Affordable Minimum Value Coverage through an insurance professional or directly with a carrier.
  • Has received one or multiple notices of their requirement to offer coverage.

We receive calls from employers around the country who are experiencing concern about compliance. Finding the right solution and supporting their needs should be the primary focus of anyone assisting these vulnerable employers and their employees.

Learn more about Minimum Essential Coverage
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