How MEC Works with Health Sharing for Better Care

Minimum Essential Coverage (MEC) is any health coverage that fulfills the Affordable Care Act’s (ACA) individual mandate (shared responsibility provision). While the federal penalty for not having MEC was eliminated in 2019, the concept remains crucial because certain special enrollment periods following qualifying life events only trigger if you previously had MEC, and some states still enforce their own individual mandate penalties for lacking MEC. (HealthInsurance.org)

Not all health-related plans qualify as MEC. The ACA outlines very specific types of coverage that meet the requirement. These include:

• Employer-Sponsored Plans – Even some limited or “skinny” plans qualify as MEC, as long as they’re offered through an employer.

• Individual Major Medical Plans – Both ACA-compliant plans and older “grandfathered” or “grandmothered” policies count.

• Government Programs – Such as Medicare, most Medicaid plans, and the Children’s Health Insurance Program (CHIP).

• Military Health Coverage – TRICARE and certain veterans’ health benefits.

👉 For MPB Health, this means you can have MEC for compliance and preventive care, while relying on medical cost sharing for larger, unexpected expenses.

Not every health-related plan qualifies. Some products may provide helpful benefits, but they don’t meet ACA standards.

Plans that typically do not count as MEC include:

• Short-term health plans

• Critical illness or accident-only insurance

• Medical discount programs

• Standalone dental or vision coverage

• Limited-benefit plans

These types of coverage might help with specific needs, but they won’t satisfy ACA requirements for MEC.

You might be wondering: If the federal penalty for not having MEC ended in 2019, why does this still matter? Here are three reasons:

1. State Mandates

Some states — including California, Massachusetts, New Jersey, Rhode Island, and the District of Columbia — have their own individual mandate penalties. If you live there and don’t have MEC, you could face a tax penalty.

2. Special Enrollment Periods

Many qualifying life events (like getting married or losing your job-based coverage) only trigger a special enrollment period if you already had MEC beforehand.

• Example: If you get married, at least one spouse must already have MEC to enroll in a new plan through the Marketplace.

3. Preventive Care Access

MEC plans typically include preventive care services, such as annual checkups, vaccines, and screenings. This helps you stay ahead of health issues and catch problems early.

Here’s the catch: MEC doesn’t guarantee full coverage for major medical events.  MEC ensures compliance and preventive services, but if you face a hospitalization, surgery, or serious illness, MEC on its own may leave you with significant medical bills.

That’s where pairing MEC with additional protection makes sense.

At MPB Health, we understand that healthcare isn’t one-size-fits-all.  Combining Minimum Essential Coverage (MEC) with health sharing creates a powerful alternative because it provides both preventive and major medical needs protection in a flexible, affordable way.

MEC satisfies the ACA requirement for preventive services like annual checkups, screenings, and vaccines—while health sharing steps in to handle larger, unexpected expenses such as hospitalizations, surgeries, or emergencies.

Together, they provide members with peace of mind, cost savings, and freedom of provider choice without the high premiums and restrictions of standard insurance, making it a smart solution for individuals, families, and businesses seeking comprehensive yet budget-friendly healthcare.

⚠️ Important Note: Not all MPB Health memberships include MEC. 

While minimum essential coverage plays an important role in compliance and preventive care, MEC alone may not be enough to protect you from high medical costs.

That’s why MPB Health offers a better path forward: MEC for compliance + health sharing for affordability and protection. Together, they form a smart, cost-effective alternative to traditional health insurance.

Protect yourself and your wallet — explore how MPB Health can help you stay covered and prepared for life’s unexpected healthcare costs.

Ready to learn more?

Sources:

• HealthInsurance.org.  Minimum essential coverage (MEC)  https://www.healthinsurance.org/glossary/minimum-essential-coverage/
• Verywell Health. What is minimum essential coverage, and why does it matter?  https://www.verywellhealth.com/what-is-minimum-essential-coverage-and-why-does-it-matter-4155140

Disclaimer:
The content provided in this article is for informational and educational purposes only and is not intended as medical advice, diagnosis, or treatment. Always consult a qualified healthcare professional before making any changes to your health regimen, starting new therapies, or discontinuing existing treatments. Mention of specific practices, therapies, or organizations does not constitute an endorsement. The views expressed are those of the author and may not reflect the policies or positions of any affiliated entities.