Healthcare can be complicated, and for small to medium-sized businesses (SMBs), understanding how to meet Affordable Care Act (ACA) requirements can be especially tricky. Brokers are key in helping these businesses sort through their options, and many turn to Minimum Essential Coverage (MEC) plans as a cost-effective solution.
While MEC plans can be a great fit for some, they aren’t a one-size-fits-all solution. If brokers aren’t careful about explaining the ins and outs of these plans, businesses can run into compliance issues or, even worse, dissatisfaction and turnover among employees. It’s essential for brokers to clearly communicate what MEC plans can and can’t offer, manage expectations, and suggest other options when necessary.
At PrestigePEO, we work alongside brokers to make sure they’re equipped with the tools, knowledge, and support to guide their clients toward the best solution. From education and compliance help to open enrollment support and a broader range of benefits beyond MEC, we help brokers grow their client base, build trust, and offer more comprehensive options.
In this article, you’ll learn:
- Brokers play a critical role in guiding SMBs through ACA compliance, with MEC plans often serving as a cost-effective option.
- MEC plans fulfill ACA’s minimum coverage requirements, covering preventive services but leaving out things like hospitalization or prescriptions.
- Many SMBs mistakenly view MEC plans as comprehensive, which can lead to employee dissatisfaction and turnover.
- MEC plans work well for businesses with a healthy workforce but may need extra benefits to stay competitive.
- PrestigePEO gives brokers access to a variety of benefits solutions, compliance resources, and educational tools to enhance client offerings.
What MEC Covers and Does Not Cover
When discussing MEC plans with clients, it’s important to be clear about what they do and don’t include. These plans are designed to meet the minimum ACA requirements, offering basic health coverage.
MEC plans typically cover preventive services, such as vaccinations, screenings and annual check-ups, all of which are essential for promoting employee health.
However, it’s important to explain that MEC plans don’t cover more serious medical needs like hospital stays, surgeries, specialist visits or prescription medications. Employees who require these services may face significant out-of-pocket costs, which can lead to frustration and dissatisfaction.
By clearly outlining what MEC plans include, and more importantly, what they don’t, brokers can help clients make informed decisions. This transparency helps avoid surprises down the road and builds trust between brokers and clients.
Common Misconceptions About MEC Plans: MEC Plan Positioning for Brokers
Misunderstandings about MEC plans are common and can lead to dissatisfaction and compliance issues for SMB clients.
Misconception: MEC plans provide comprehensive coverage.
Reality: MEC plans only cover the basics required by the ACA, such as preventive services, but don’t offer more extensive medical care like hospitalization, surgeries, or prescription medications.
How to address it: Brokers should clearly explain the limits of MEC plans, helping clients understand that these plans are not a one-size-fits-all solution for all employee healthcare needs.
Misconception: Offering an MEC plan means employees’ healthcare needs are fully met.
Reality: While MEC plans meet ACA requirements, they don’t provide full coverage, which can leave employees feeling underinsured. This can lead to dissatisfaction, higher turnover, or difficulty attracting talent.
How to address it: Brokers can guide clients in setting realistic expectations, discussing supplementary benefits or more comprehensive plans that better align with employee needs.
Misconception: MEC plans are enough to attract and retain top talent.
Reality: In a competitive job market, offering only an MEC plan may not be enough to compete with businesses that offer more robust benefits packages.
How to address it: Brokers should help clients evaluate their recruitment goals and industry standards, suggesting additional benefits to make their offerings more competitive and appealing to top talent.
When is MEC an Appropriate Choice?
MEC plans can be an appropriate choice for SMBs that are primarily focused on meeting ACA compliance at the lowest possible cost. These plans are well-suited for businesses with a workforce that doesn’t expect or need much in terms of medical care.
However, brokers should assess each client’s situation, considering factors such as employee demographics, industry standards and recruitment goals.
In some cases, offering a MEC plan as a baseline offering, supplemented by voluntary benefits or more comprehensive plans, can provide a balanced approach that meets both compliance and employee satisfaction needs.
For example, a business with a young, healthy workforce may find that an MEC plan, combined with options for employees to purchase additional coverage, meets their needs. On the other hand, businesses in industries where comprehensive benefits are standard may need to offer more robust options to remain competitive.
PrestigePEO helps brokers assess these needs and provide tailored solutions. With our range of employee benefits options, we help brokers find the right balance between compliance, cost and employee satisfaction.
How PrestigePEO Helps Brokers Go Beyond MEC
At PrestigePEO, we empower brokers to offer more comprehensive employee benefits packages, extending beyond the limitations of MEC plans. With access to major medical plans, dental and vision coverage, wellness programs, and more, brokers can present clients with a full suite of options that enhance employee satisfaction and retention. These benefits can be tailored to meet each client’s unique needs, ensuring that they remain competitive in their industry and attractive to top talent.
We also provide ongoing compliance support, affordable healthcare options, and educational resources to help brokers stay ahead of healthcare regulations. This is essential for ensuring that clients remain compliant with ACA requirements while offering employee benefits that truly meet their employees’ needs.
Our comprehensive approach goes beyond just benefits options; we also offer educational tools to keep brokers informed about the latest regulations and industry trends. This ongoing training allows brokers to stay proactive and provide valuable guidance to their clients.
Additionally, PrestigePRO streamlines benefits administration, making it easier for brokers to manage their clients’ plans. This allows brokers to focus more on advising clients strategically rather than dealing with administrative tasks, enhancing their service offering.
With PrestigePEO’s resources, brokers can deliver a more holistic approach to employee benefits, addressing compliance, cost, and recruitment needs. This positions brokers as trusted advisors in the marketplace, adding significant value to their client relationships.
Reasons to Partner with PrestigePEO
PrestigePEO is not just another PEO. We deliver a true white glove experience designed to make brokers and their clients feel supported at every step. Our team works alongside you, handling the details of packaging, communicating and sustaining EAPs so you can focus on strengthening client relationships.
Our approach includes:
- A dedicated HR Business Partner for every client, serving as a single point of contact and hands-on guide throughout activation and beyond
- Proactive alignment calls to understand client goals and ensure messaging resonates
- Seamless rollout of National EAP, including manager briefings, employee-facing communications and engagement campaigns
- Ongoing support with reporting and insights to demonstrate retention and productivity outcomes
- Continuous follow-up to keep utilization high and awareness fresh year-round
With PrestigePEO, brokers gain more than access to competitive employee benefits. You gain a partner committed to your clients’ long-term success, ensuring every EAP we launch together is visible, accessible and impactful.
That is the PrestigePEO difference: a high-touch partnership that helps brokers grow their business while delivering exceptional value to SMB clients.
Ready to provide stronger wellness benefits for your SMB clients? Contact us today to schedule a Broker Partnership Consult to add National EAP.
Empowering Brokers for Long-Term Success in Healthcare Solutions
PrestigePEO equips brokers with the tools, education and support they need to confidently guide SMBs through today’s healthcare complexities. By combining compliance expertise with access to a diverse range of employee benefits solutions, PrestigePEO helps brokers reduce risk, enhance client satisfaction and build lasting partnerships.
By positioning MEC plans appropriately and offering alternatives when needed, brokers can strengthen client relationships and drive long-term growth. With PrestigePEO as a trusted partner, brokers can navigate healthcare complexities with confidence, delivering the comprehensive, competitive benefits packages today’s businesses need to thrive.
Contact PrestigePEO today to learn how our partnership can help you expand your client offerings and deliver smarter healthcare solutions.
