A Potential Result of a New Biden Administration
Over the term of the presidential election healthcare has been big on the Biden agenda. In a statement about 3 days ago, Biden said that one of the top 3 things he will do in his new administration is to step up enforcement action against employers who have not complied with the law.
I have been talking to several Benefit Consultants lately that have concerned clients/prospects. Clients with 50 or more employees that currently are not in compliance with the ACA, offering Minimal Essential Coverage that is affordable to at least 95% of their employees. There are some substantial penalties connected to this lack of compliance. Just one of the penalties is the annualized penalty of $2700/employee (minus 30 employees) for not offering a plan, there are others for non-affordability and other issues. A company with 100 full time employees would be charged a fine of $189,000. (That is 100 EE-30 EE= 70EE x 2700 = 189,000.)
What I recommend to these consultants is to offer a MEC or a Minimum Essential Coverage plan. These plans must be, by law, self funded, and cover at least all the minimum essential benefits as defined by the ACA. This is a preventive benefit only plan. When I offer these plans to consultants, we also include a $0 copay telemedicine package in the plan. There are other limited benefits we can add to a MEC plan. We can discuss those ideas as needed.
I recommend that we use the plans developed by a trusted partner, BDG Benefits Design Group, a TPA based in Dallas, TX. BDG has long experience with MEC plans and will do all they can to keep the groups in compliance.
MEC plans are not major medical, but they satisfy the letter of the law for the employer that cannot afford a major medical plan or has not offered a Major Medical Plan. In this new Administration, it would be prudent that any company that employees 50 people or more, should seriously take a look at providing an MEC.
If the MEC a perfect solution? Not really. Is it the right solution for the right employer? Absolutely.
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