The Affordable Care Act (ACA) mandates that individuals enroll in qualifying health insurance coverage or possibly pay a penalty when filing their federal tax returns.
After 60 days of full-time employment, employees are eligible to participate in these medical plans effective the first day of the following month. Full-time is defined as having worked an average of 30+ hours per week.
IMI is pleased to offer two employee medical plan options that meet the base level requirements of the ACA for eligible individuals.
- The first option is called the MEC Blue plan (MEC stands for Minimum Essential Coverage; it does not include hospital coverage). IMI is providing this coverage to you at a low rate of $20.00 per week. Additionally, you may decide to cover your dependents in MEC coverage at very affordable cost. Enrollment in the MEC Blue plan will exempt an individual from the ACA individual penalty. In other words, enrolled individuals should not have to pay a penalty on their next tax filing.
- The second option is called the MVP plan (Minimum Value Plan; it includes hospital coverage). This plan is designed to provide comprehensive coverage for the most catastrophic and expensive types of care. IMI’s intent is to provide this MVP coverage to you at a cost that is within the affordability guidelines set by the ACA; this means the weekly rate should not exceed $58.00 for employee only coverage. You may also enroll your dependents in MVP coverage but it will cost up to $130.00 per week. Enrollment in the MVP plan will also exempt an individual from the ACA individual penalty.
Please note that the MVP plan has a $2,000 annual deductible per person. This means that any hospital or prescription expense has to be paid out of pocket until the $2,000 deductible is met. Then, the excess expenses are covered at 90% according to the Medicare rate schedule. The covered person is responsible for the difference in cost, up to an annual out-of-pocket maximum of $6,450.
It is important that you understand that the offer of this Minimum Value Plan at affordable pricing, as determined by the ACA, means that you will likely not be qualified to receive subsidized coverage from the public marketplace (www.Healthcare.gov). You can secure coverage through the marketplace, just without a subsidy, which means a higher premium cost than IMI offers.
An employee can voluntarily also add the following supplemental insurance benefits:
- Hospital Indemnity Insurance and/or
- Dental Insurance and/or
- Short-term Disability Insurance and/or
- Vision Insurance
If an employee does not enroll in the MEC Blue or the MVP plan, he/she may not get another chance to enroll in the IMI-provided benefits plans until there is a qualifying life event change or the open enrollment window for 2019.
Further information about the benefit plans and the employee payroll deductions are provided in this package HERE.
Remember that IMI’s offering of a Minimum Value Plan means that you will likely not be qualified to receive subsidized coverage from the public marketplace (www.Healthcare.gov) for yourself. Coverages selected through IMI are deducted via payroll.