What is Minimum Creditable Coverage?
Minimum Creditable Coverage is the set of benefits that an individual needs to meet the state mandate to be insured. The law does not require employers to offer benefits that meet Minimum Creditable Coverage. Employees who take your health insurance benefit may hope that it will meet the Minimum Creditable Coverage standards and protect them from tax penalties, however. For calendar year 2008, any plan that is licensed for sale in Massachusetts qualifies as Minimum Creditable Coverage. But the standards go up on January 1, 2009. Starting on that date, a plan will need to: • Cover prescription drugs; • Cover regular doctor visits and check-ups before a deductible; • Cap the deductible at $2,000 for an individual or $4,000 for a family each year; • Cap out-of-pocket spending for health services at $5,000 for an individual or $10,000 for a family each year if you have a deductible or co-insurance; • Have no cap on total benefits for a sickness or for each year. Lifetime limits on coverage
