Do I Get a Premium Tax Credit if My Employer Only Offers Minimum Essential Coverage (MEC)?

Plan Benefits Forum
1

Hey everyone,

Quick question—if my employer only offers Minimum Essential Coverage (MEC), does that mean I’d qualify for a premium tax credit? I’m in Texas and just want to confirm.

Thanks for any help!

3

MEC plans can vary. What’s key for the premium tax credit is whether the MEC plan also meets the “minimum value” standard. Check with your employer or benefits rep—they should be able to clarify if the MEC plan is also minimum value.

4

@Arielle
This is right—MEC doesn’t always mean minimum value. Ask your employer if the plan meets minimum value. Also, if the cost of the plan is more than 8.39% of your household income (for 2024), it might not be considered affordable, which could make you eligible for a subsidy.

5

If your employer’s MEC plan is considered affordable (less than 9.02% of your income), you probably won’t qualify for a tax credit. If it’s unaffordable, you may qualify.

6

Brady said:
If your employer’s MEC plan is considered affordable (less than 9.02% of your income), you probably won’t qualify for a tax credit. If it’s unaffordable, you may qualify.

To clarify—MEC relates to the individual mandate. For the employer mandate, the focus is on minimum value. They’re separate standards, so make sure to confirm which one your plan meets.