Is your benefits provider increasing your risk?
August, 20th, 2019
Are you properly implementing your MEC plans?
There’s a misconception in the staffing industry—sometimes even perpetuated by benefits providers—that MEC implementation is a lot of hard work on your internal teams. The result is that many staffing companies are not properly implementing their MEC plans or encouraging MEC participation among employees.
What are the dangers of low MEC participation?
- You’re actually increasing your risk. The fewer people who accept your offer of the MEC, the larger the pool of employees eligible for a subsidy on the Exchange—which means increased exposure to the (B) tax.
- You’re increasing your MEC rates. Insurance is built on participation, and the fewer people participating in a plan, the more risk and the higher your rates.
- You’re missing a great opportunity to fund future benefits. By properly using self-funded MEC plans, you can turn your MEC plan into an amazing tool to fund additional benefits.
What can low MEC participation say about your provider?
If offering the MEC has proven difficult for you, or your participation is very low, it could actually be a sign that your provider is not properly equipped to aggregate your plan. To help you find out if this is the case with your provider, here are two questions to ask about your current MEC plan:
- Does your provider require direct payment by your employees? While it may sound tempting to push the responsibility of the MEC payment directly to your employees versus weekly payroll deduction, you’re actually doing a huge disservice to both them and you. By setting up extra barriers to the MEC, you’re discouraging participation, increasing your risk, and ultimately hurting your employees.
- Does your provider only offer MECs on a monthly basis vs. a weekly basis? If your MEC plan is the odd man out while all of your other benefits are offered weekly, it likely means that your provider is not equipped to offer the MEC on a weekly, payroll deduction basis.
Make the MEC work for you
Benefits in a Card is the first benefits provider to exclusively serve the temp staffing industry, and we boast a 23-year legacy of compassionate service to our clients. We encourage our clients to strive for a higher MEC participation, and we’ve seen amazing results from this approach.
Does your MEC participation seem too low? Do you want to see it increase even further? Contact us to find out how you can implement best practices and increase your MEC participation.