Enroll in a MEC Plan & Avoid Government Penalties
Companies seeking to avoid penalties from the IRS and federal government, need to know about MEC plans. If you have over 50 full-time employees, you are required by the Affordable Care Act (ACA) to offer minimum essential coverage. This coverage should supply your employees with at a minimum preventative care. The problem is, there are countless health insurance plans in Texas, and knowing which one is right for your business can be challenging.
Let’s take a look at how MEC plans factor into Houston health insurance coverage plans for employers, and what penalties you could face if you fail to cover your employees.
What is Minimum Essential Coverage?
Minimum Essential Coverage has a lower threshold than other requirements. However, employers are required to offer this at the least to avoid “non-offering employer” penalties. While some plans vary, MEC plans cover specific wellness and preventive services which are outlined in the ACA. This leads to lower costs for employers, in comparison to traditional group health insurance. Additionally, offering MEC allows employees to ensure they live up to the individual mandate provision and avoid penalties they may incur.
All businesses with more than 50 employees must provide MEC to avoid paying a $2,000 fee per full-time employee. Conversely, you can face up to a $3,000 penalty if you provide a plan that doesn’t meet the minimum value requirements and your employees have to go to the marketplace to find coverage.
Not offering a suitable plan for your employees can be very expensive if you’re a small business owner. This minimum essential coverage employer requirement can easily be satisfied with the right plan. Once you find a Houston health insurance plan that suits your business, you can deduct your employer contribution on your taxes.
How to Avoid Penalties
The easiest way to avoid these penalties is to take up a minimum essential coverage plan for your employees. The plan must cover some prescription medications and office visits. Often times MEC plans are called “qualifying health coverage” plans also.
Fortunately, we offer Houston health insurance plans for small businesses, including minimum essential plans. Contact our team to learn more about our plans and how you can avoid penalties.