Minimum essential coverage is the basic coverage that satisfies the individual mandate, while minimum value means an employer plan pays at least 60 percent of expected costs. An affordable, minimum-value offer shields an employer from mandate penalties.
A Minimum Essential Coverage plan provides the baseline preventive coverage that satisfies the ACA’s coverage definition. Larger employers sometimes use thin MEC plans to manage employer-mandate penalties.
Minimum essential coverage (MEC) is the basic type of coverage that satisfies the ACA’s individual coverage standard; minimum value (MV) is a higher bar meaning the plan pays at least 60% of expected costs and provides substantial inpatient and physician coverage. Large employers must offer MEC that provides minimum value to avoid the bigger employer-mandate penalty.