Which of the following counts as minimum essential coverage (MEC) for purposes of PPACA?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Minimum essential coverage is the coverage baseline that satisfies the individual shared-responsibility provision of PPACA. It includes employer-sponsored group health plans, individual market plans (including QHPs), Medicare, Medi-Cal and Medicaid, CHIP, TRICARE, and other government-sponsored coverage. Limited products — discount medical cards, accident-only policies, hospital indemnity policies, and short-term limited-duration plans — generally do not constitute MEC, because they do not provide the comprehensive protection the law treats as real coverage. The exam distinguishes these limited products from MEC-qualifying comprehensive plans.
Why the other options are wrong
- B) Discount medical cards are not insurance at all and do not meet the MEC definition, so this answer confuses a savings program with real coverage.
- C) Short-term limited-duration policies are not treated as MEC for the individual mandate, even though they provide some temporary protection.
- D) Accident-only and hospital indemnity policies are limited-benefit products and do not qualify as MEC, so this answer confuses limited indemnity coverage with comprehensive coverage.
Memory hook
MEC = the coverage that counts: employer plans, marketplace plans, Medicare, Medi-Cal. Discount cards and mini policies don't count.