MEC
Abbreviation with 2 meanings
| Stands for | Minimum essential coverage |
|---|---|
| Meanings | 2 |
| Categories | Medical, Business & Finance |
MEC has two meanings. It stands for Minimum essential coverage (health insurance) or Modified endowment contract (insurance).
Meanings of MEC at a glance
| # | MEC stands for | Context |
|---|---|---|
| 1 | Minimum essential coverage | Medical › Health Insurance |
| 2 | Modified endowment contract | Business & Finance › Insurance |
1. Minimum essential coverage
Medical · Health Insurance Abbreviations
Type of health coverage that satisfied the Affordable Care Act's individual mandate, including employer plans, marketplace plans, Medicare Part A, most Medicaid, CHIP and TRICARE. Losing MEC is a qualifying event for a marketplace special enrollment period.
Example: Short-term plans aren't MEC, so losing one doesn't trigger special enrollment.
The federal penalty for going without coverage was reduced to zero starting in 2019, but California, Massachusetts, New Jersey, Rhode Island and the District of Columbia enforce their own mandates. Coverage is reported to the IRS on Forms 1095-B and 1095-C.
2. Modified endowment contract
Business & Finance · Insurance Abbreviations
Life insurance policy funded with more premium than federal limits allow under the "seven-pay test," which loses some tax advantages: loans and withdrawals are taxed as income first and may face a 10% penalty before age 59½.
Example: Adding that lump sum would turn the policy into a MEC.
The MEC rules were created by the Technical and Miscellaneous Revenue Act of 1988 to curb the use of life insurance as a tax shelter. The death benefit remains income-tax-free.
Related abbreviations
More health insurance abbreviations
- MACRA – Medicare Access and CHIP Reauthorization Act
- MAGI – Modified adjusted gross income
- MAPD – Medicare Advantage Prescription Drug plan
- MCO – Managed care organization
- MIPS – Merit-based Incentive Payment System
- MLR – Medical loss ratio
- MOOP – Maximum out-of-pocket
- MPFS – Medicare Physician Fee Schedule
See all 107 health insurance abbreviations →
More insurance abbreviations
- IUL – Indexed universal life
- LAE – Loss adjustment expense
- LTC – Long-term care insurance
- LTD – Long-term disability insurance
- MedPay – Medical payments coverage
- MGA – Managing general agent
- MVR – Motor vehicle record
- MYGA – Multi-year guaranteed annuity
See all 86 insurance abbreviations →
This entry is for general education and is not medical advice. Abbreviation use varies between institutions; always confirm in context.