Minimum Essential Coverage
As of January 1, 2014, individuals who have not received an exemption are required to demonstrate that they maintain minimum essential coverage or make a payment, called the “individual shared responsibility payment,” when filing their federal income tax returns. Minimum essential coverage is the type of coverage an individual needs to have to meet the individual shared responsibility requirement under the Affordable Care Act. The following types of health insurance coverage are examples of minimum essential coverage:
– Coverage purchased in the individual market, including the Federally-facilitated Marketplaces
– Government-sponsored coverage, such as Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), and TRICARE (the Department of Defense heath care program)
– Coverage under an employer-sponsored plan Individuals who have not received an exemption from the individual shared responsibility requirement and do not have minimum essential coverage (or the applicable taxpayers who claim such individuals as tax dependents) are required to make an individual shared responsibility payment.