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Employer Benefits IQ
Compliance

Minimum Essential Coverage (MEC)

The minimum level of health coverage required under the ACA.

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Full Definition

Minimum Essential Coverage is the type of coverage an individual must have to avoid the individual mandate penalty (now $0 at the federal level but still applicable in some states). For employers, offering MEC to full-time employees is the threshold requirement under the ACA employer mandate Section 4980H(a). MEC includes most employer-sponsored group health plans, government programs, and individual market coverage.