How Employers Can Use MEC Plans to Retain Hourly Workers in 2026
If you’ve struggled to keep hourly workers on staff, you’re not alone. Across industries like hospitality, staffing, home healthcare, and food service, turnover has become one of the biggest challenges employers face going into 2026.
Here’s the good news: while you can’t control everything—like inflation, job-hopping trends, or scheduling volatility—you can control one key factor that drives loyalty: benefits.
And not just any benefits. Affordable, accessible, and easy-to-understand coverage that shows your employees you actually care.
That’s where Minimum Essential Coverage (MEC) plans come in. For employers, they’re an affordable way to stay compliant with the Affordable Care Act (ACA) and offer real value to your workforce. For hourly workers, they can be the difference between feeling like a disposable number and feeling valued enough to stay.
Let’s unpack how MEC plans can help you recruit, retain, and re-engage your hourly workforce in 2026—without breaking your budget.
The State of the Hourly Workforce in 2026
Hourly workers are the backbone of industries that keep daily life running—restaurants, home care agencies, manufacturing, and retail. Yet, many employers are still struggling to fill shifts and keep good people from leaving.
A few trends are driving the challenge:
Turnover remains high. In 2025, hourly employee turnover averaged 60% or higher across several industries. Many employees leave within 90 days.
Benefits expectations are shifting. Even part-time or hourly employees now expect some form of health coverage. Many say they’d stay longer if their employer offered affordable benefits.
Competition for talent is fierce. With remote jobs and gig platforms expanding, workers have more options—and they’re quick to jump for better benefits or more stability.
Employers can’t solve all of that, but they can make their jobs stickier by offering something meaningful and accessible: basic healthcare coverage that protects employees and their families.
That’s exactly what MEC plans deliver.
What is a MEC Plan, and Why Does It Matter?
A Minimum Essential Coverage (MEC) plan is a health plan that meets the baseline ACA requirements for coverage. It’s designed to cover preventive services and key medical needs without the high premiums that come with traditional major medical insurance.
MEC plans include benefits like:
Annual physicals and wellness visits
Vaccinations and preventive screenings
Telemedicine or virtual care options
Basic urgent care and lab services
For employees, that means they can see a doctor, stay healthy, and meet ACA requirements.
For employers, it means compliance with federal law and lower turnover costs.
Here’s the best part: MEC plans are affordable. They cost a fraction of what traditional plans do—making them realistic for employers with tight budgets or large hourly workforces.
The Real Cost of Turnover
Let’s put this into perspective.
Replacing an hourly worker can cost $2,000 to $5,000 when you factor in lost productivity, recruitment, training, and onboarding. Multiply that by 10 or 50 positions, and you’re looking at tens (or hundreds) of thousands of dollars every year.
Meanwhile, offering a MEC plan can cost less than half that amount per employee, per year.
And when workers know they have reliable access to healthcare—even basic preventive care—they’re more likely to:
Show up consistently
Stay longer
Recommend your company to others
Take fewer sick days
That’s the retention math that works in your favor.
Why Hourly Workers Leave (and How MEC Helps)
If you ask most employers why their hourly staff leave, the answers are consistent: low pay, unpredictable hours, and lack of benefits.
Here’s how MEC plans help tackle that third problem head-on.
1. They Show You Care
When you offer a MEC plan, you’re sending a simple but powerful message: “You matter enough for us to invest in your health.”
That alone sets you apart in industries where many competitors still don’t offer benefits to part-time or variable-hour workers.
2. They Offer Stability
Hourly workers crave consistency. When you can say, “You’ll have coverage no matter how your hours fluctuate,” that creates trust—and trust leads to loyalty.
3. They Reduce Financial Stress
Many hourly employees avoid going to the doctor because they fear the cost. MEC plans remove that barrier for preventive and basic care. Healthier employees mean fewer last-minute callouts and more dependable schedules.
4. They Simplify Compliance
If you’re an Applicable Large Employer (ALE) with 50 or more full-time employees, offering MEC coverage helps you meet ACA requirements and avoid hefty IRS penalties. It’s the rare benefit that protects both your employees and your business.
Designing a MEC Plan That Attracts and Retains
Not all MEC plans are created equal. To get the most retention value from your offering, you need a plan that fits your workforce.
At Essential Benefit Administrators, we’ve found that the most successful employers do three things when designing their plans:
1. Match the Plan to the Workforce
For example:
Home care agencies might prioritize telehealth access and preventive services that help caregivers stay healthy on the job.
Hospitality employers might focus on affordability and fast enrollment for seasonal or part-time staff.
Staffing agencies often need flexible MEC plans that can be rolled out quickly to new hires across multiple locations.
A one-size-fits-all approach doesn’t cut it. Your MEC plan should feel built for your team.
2. Make Enrollment Easy
Complicated enrollment processes are a deal-breaker. Hourly employees may not have corporate email addresses or regular access to HR.
Use clear, bilingual communication and mobile-friendly signup options. EBA’s enrollment tools are designed with this in mind—because making things simple increases participation and satisfaction.
3. Communicate the Value (Clearly and Often)
Your employees can’t value a benefit they don’t understand. Many hourly workers have never heard the term “MEC plan,” so explain it in plain language:
“This plan helps you stay healthy with free preventive care—like annual checkups, flu shots, and screenings. You can use it right away, and it helps you meet ACA coverage requirements.”
Simple, human communication drives adoption and loyalty.
Case in Point: The Hidden ROI of Offering MEC
Let’s say you run a 300-person hospitality business, with about 60% turnover per year.
You offer a MEC plan that costs roughly $60 per employee per month. About half your workforce enrolls.
That’s an investment of roughly $108,000 per year—but if it reduces turnover by even 15%, you could save over $200,000 annually in recruiting and training costs.
That’s a positive ROI and a happier workforce.
Why EBA’s MEC Plans Are Built for Retention
At Essential Benefit Administrators, we’ve worked with hundreds of employers in industries where retention is the #1 challenge. We’ve seen firsthand how the right benefits can completely change the story.
Here’s what makes our MEC plans stand out:
Fast Implementation: Get compliant, affordable coverage up and running in days, not months.
Flexible Options: We offer multiple plan designs to fit your industry and workforce.
Bilingual Support: We make sure every employee understands their benefits.
Compliance Confidence: Our plans meet all ACA minimum essential coverage requirements, protecting you from penalties.
Real Retention Impact: When employees feel cared for, they stay. It’s that simple.
What to Expect from Retention-Focused Benefits in 2026
Looking ahead, benefits will play an even bigger role in workforce stability.
By 2026:
Regulatory pressure will increase, making MEC compliance even more important.
Employee expectations will continue to rise, especially around mental health, telemedicine, and affordability.
Employers who act early—offering simple, affordable coverage—will have a competitive advantage in hiring and retention.
In other words: you can either pay for turnover later or invest in retention now.
A MEC plan is one of the simplest, most cost-effective ways to do the latter.
How to Get Started
If you’ve never offered a MEC plan before, getting started is easier than you might think.
Here’s what the process typically looks like:
Schedule a quick consultation – EBA helps you understand your workforce data and compliance needs.
Choose a plan design – We’ll match you with a MEC plan that fits your budget and your employee demographics.
Launch with confidence – Our team handles the setup, enrollment, and communication.
Stay compliant year-round – We track regulatory changes and affordability thresholds, so you don’t have to.
The result? Lower turnover, higher satisfaction, and ACA peace of mind.
The Bottom Line
In 2026, employers who keep their hourly workers will be the ones who listen—to what they need, what they value, and what keeps them coming back.
Health coverage isn’t just a box to check for ACA compliance. It’s a signal that says, “You’re part of this team, and we want you to stay.”
With Minimum Essential Coverage (MEC) plans, you can meet your ACA obligations, protect your business from penalties, and build the kind of workplace that hourly employees don’t want to leave.
Our team makes it simple. Affordable coverage. Bilingual support. Quick setup. Retention built right in. Ready to get started?