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Should Your Business Go With A Minimum Essential Coverage Plan?

February 18, 2021, by New City Insurance

four co working smiling with their Minimum Essential Coverage PlanOn a national level, healthcare regulations and provisions have changed significantly since the Affordable Care Act (ACA), which took effect in 2014. This regulation altered the requirements that employers must follow. Therefore, it’s important to be familiar with the specific guidelines and make sure you are providing coverage that falls within the scope of minimum essential coverage. Here is a close look at MEC plans and why they might be the best option for your company.

Minimum Essential Coverage Definition

Minimum essential coverage (MEC) is the basic requirement of specific coverages by all health insurance plans as per the ACA. “Applicable Large Employers” (ALEs) are required to offer minimum essential coverage to employees in order to avoid paying penalties. An “ALE” is any company with at least 50 full-time equivalent employees. To be classified as a full-time employee, it is anyone who works more than 30 hours on average within a working week.

Minimum Essential Coverage Plans

Minimum essential coverage plans are plans that only meet minimum essential coverage requirements and offer little to no benefit beyond that. These plans tend to be very inexpensive and protect companies from ACA penalties.

Qualities A Plan Needs To Be Considered A Minimum Essential Coverage Plan

group of people in office all covered with a Minimum Essential Coverage PlanMinimum essential coverage plans are typically affordable precisely because they only cover preventive and wellness-related services. They do not cover benefits such as emergency services, prescription drugs, or maternity and newborn care.

Qualities To Have Before Getting An MEC Plan

An MEC Plan is not going to be right for everyone. There are a few items and qualifications that you need to consider about your specific company before you start looking into an MEC plan. Below are a few:

You Employ More Than 50 Employees

Typically, businesses offer MEC plans because they are required by law to offer health insurance coverage and want to keep their costs low. If your business is below 50 full-time equivalent employees, you aren’t required to offer insurance to your employees. If you are above 50 full-time equivalent employees, then you must offer health insurance and MEC plans could be a good option for you.

You Want To Save On Your Health Plan

two people learning what a minimum essential coverage plan isOne of the main functions of MEC plans is to save your business money. By keeping premiums extremely low, sometimes one tenth of the cost of a traditional health insurance plan, MEC plans allow your business the ability to offer coverage at a rate that is affordable to virtually all companies.

You Want To Avoid Penalties

With the Affordable Care Act requirements, it is important that you are paying attention to the regulations and making sure that you are providing coverage that is within these requirements. If you don’t do this, you could potentially be paying penalties that are extremely high. Penalties have increased in the year 2021 to around $2,500-$2,800 per year per employee that is not offered minimum essential coverage. While these fines seem really high, they can easily be avoided with the right coverage plan.

Talk With New City About Minimum Essential Coverage Plans

Reach out to the professionals at New City Insurance in San Diego for more information about minimum essential coverage plans. Since our founding in 2008, we have been dedicated to serving the insurance needs of our clients while reshaping the industry as we know it. Our agents are highly trained and extremely knowledgeable about proprietary benefits and employee management software.

If you are looking to purchase health insurance but are unsure about how to proceed, the team at New City can assist you with this process. We offer a variety of insurance plans, including an MEC plan, so we are sure to find the right fit for your company. We provide both high-premium and low-premium plans and can therefore cater to what you can afford.

Call New City Insurance today at (888) 210-2759 or contact us online to request a consultation or to learn more about our insurance plans, including our Minimum Essential Coverage plan options.

Have Additional Questions?
Call Today: 888.210.2759
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Filed Under: Insurance,  Minimum Essential Coverage

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New City Insurance
New City Insurance
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Carol Zhang
Carol Zhang
04:29 06 Mar 22
As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.
Claudia Villalobos
Claudia Villalobos
20:14 03 Mar 22
New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!
Philippe Salas
Philippe Salas
17:02 22 Feb 22
I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.
Jennifer Polito
Jennifer Polito
17:15 09 Feb 22
Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.
Rocky Salas
Rocky Salas
23:46 07 Jan 22
So friendly, I hope to speak to him again in all my future insurance needs.
Rocky Salas
Rocky Salas
23:38 07 Jan 22
So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.
Jose Brena
Jose Brena
13:20 06 Jan 22
Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.
Anastasia Beaverhousen
Anastasia Beaverhousen
17:05 28 Dec 21
Signing up for insurance was quick and easy. Felicity Sundsboe
SFCC
SFCC
22:08 29 Nov 21
Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.
Kevin Luby
Kevin Luby
19:13 22 Oct 21
Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.
Theresa Ruybol
Theresa Ruybol
19:30 01 Jul 21
Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you
Andrea Ordendorff
Andrea Ordendorff
21:06 07 May 21
I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.
T W
T W
22:32 30 Aug 20
I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!
Mary Jane Deyette
Mary Jane Deyette
00:57 11 May 20
Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff
Alma Ortiz
Alma Ortiz
22:25 23 Feb 20
Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!
jessica kavanagh
jessica kavanagh
19:53 13 Feb 20
Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.
Tricia DeYoung
Tricia DeYoung
19:49 13 Feb 20
I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.
B Bayer
B Bayer
17:43 24 Sep 19
NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!
Jessica Lehr
Jessica Lehr
03:36 07 Jun 19
Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.
Mike McClay
Mike McClay
19:36 03 May 19
My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.
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