MEC-based plan offerings are self-insured health plan designs, which may be offered by employers to their eligible personnel for compliant health coverage. Plan sponsors are responsible for the creation and operation of their own plans and may seek insurance and/or reinsurance for such plans, but the acquisition of (re)insurance does not change the plan, its coverage, or its legal status.
Under federal law, all companies have the right to self-insure and big companies almost always do, because self-insurance gives them better control and cost efficiency than traditional insurance carriers. When small and medium-sized companies partner with ABC, they take advantage of these same valuable benefits. Groups may offer participation in health plans to their eligible plan participants, as determined by the plan sponsor in its plan document. They may require participants to pay some or all their share of the group's costs.
ABC plan services include administrative and enrollment services in a ministerial/non-discretionary capacity.
Under the Affordable Care Act, companies with 50 or more full-time employees are required to offer comprehensive benefits or face potential penalties. ABC offers plan designs that meet these requirements, with no minimum participation requirements.