MEC Plans Not Subject To Transitional Reinsurance Program Fees

ternian_logo09092011 2

Traditional stop loss participation requirements will prevent many employers from pursuing an affordable self-funded solution for ACA-compliance.

Many brokers have been under the impression that Minimum Essential Coverage (MEC) or “skinny” plans were subject to the same Transitional Reinsurance Program (TRP) fees that are being levied against traditional self-insured group plans in light of the ACA. However, CMS has just addressed this issue during a webinar Q&A at the Healthcare Administrators Association (HCAA) Annual conference on July 14.  A representative from CMS has said that these fees will not apply to MEC plans.  (These fees are $63 per employee per year for 2014, substantially adding to the cost of self-insured MEC coverage.)

Ternian Insurance Group is dedicated to keeping you informed about the latest news that impacts your business…including guidance on all of the recent changes, final rules and updates to the ACA. If you have any other questions about how MEC plans can be offered as a standalone solution or used side-by-side with an ACA-compliant major medical plan, contact us at (602) 216-0006 or email

Ternian Insurance Group
(602) 216-0006