What's a skinny MEC? 

In 2013 while some were still dreaming that the Supreme Court would strike down all of PPACA, others found enterprising ways of meeting PPACA's requirements at the lowest possible cost, and MEC was born. MEC is an employer-sponsored, self-funded health plan that covers preventive services only and costs somewhere between $40 and $90 per month.

Many in the industry, including me, thought that this was a "glitch" in the law and that surely there was no way skinny plans would survive scrutiny and make it to the market. But from 2013, prior to the implementation of PPACA, and continuing to today, the skinny MEC has passed muster.

The proper legal term for these plans is "non-minimum value plans." In the industry, they're generally referred to as MEC.

How do you fatten up a skinny plan?

Remember, MEC is minimum coverage. Minimum is its name! Since only the bare minimal coverage is provided by a MEC, its critical employees are properly educated about these plans, and given options for beefing up the skinny benefits.

So how do you properly position MEC plans, and create the best options for employers and employees alike? Here are some techniques brokers are using today.

1)      Supplement the MEC with additional health benefits. Alongside the preventive benefits, add some additional medical benefits such as telemedicine, a few doctor's visits, and generic drugs.

2)      Supplement the MEC with fixed indemnity benefits that provide some relief for the big-ticket hospitalization and surgery items.

3)      Supplement the MEC with accident benefits. In industries where the MEC is most attractive, such as retail and hospitality, there are an abundance of "young invincibles" who are great prospects for accident plans.

4)      Use other voluntary benefits, such as critical illness and group life, to round out the offering. It's easy to see how a $5000 or $10,000 critical illness plan, for just a few dollars a week, can go a long way towards offsetting the cost of treating a major illness.

Each employer will need to work with a qualified benefits advisor, accountant, and/or attorney to determine if the numbers work for them. But for large employers who haven't traditionally offered group health benefits, and are now facing enormous potential penalties, MEC might be a reasonable solution. And MEC can provide an entry into the health care system for many workers, especially when paired with supplemental product offerings.

My advice? Proceed with caution, understanding the rules could still change. And remember that employers offer benefits for many reasons, not solely to comply with PPACA. Benefits help to attract and retain qualified workers, and may also contribute to a healthier and more productive workforce. In considering how to offer the best range of benefits possible, employers should rely on qualified advisers, including their brokers and attorneys, and look at new and creative options such as MEC.