Massachusetts has an individual health insurance mandate that requires most adults to carry health insurance if it is affordable to them and that meets certain coverage standards (referred to as “Minimum Creditable Coverage” (MCC). The Massachusetts Health Connector sets the coverage and affordability standards, and the Massachusetts Department of Revenue (DOR) administers the requirement via the state tax filing process. Please note that the standards described here are specific to the Massachusetts health reform law (not the Affordable Care Act, the federal health reform law).
Continue reading to find out what you need to know about the individual mandate →
Certificate of Exemption and Minimum Creditable Coverage
If you face a special financial hardship, the state’s tax forms give you an option to appeal the penalties for remaining uninsured. In addition, the Health Connector offers a Certificate of Exemption for individuals who can provide information about the 2023 tax year before it ends.
If you missed the December 1, 2023 deadline to apply for an exemption for 2023 when filing your taxes, remember you will also have the opportunity to request an exemption when filing your 2023 Massachusetts state tax return.
Related Resources
Two concepts form the basis of the exemptions process:
- “Minimum Creditable Coverage” – the essential health insurance benefits you need to avoid tax penalties in Massachusetts. Learn more ►
- “Affordability” – the cost of the essential health insurance benefits. Based on that cost, your income, the health insurance options available to you, or a special hardship, you may be exempt from the tax penalties.
Use our Calendar Year 2023 Affordability Information Sheet to predict your penalty risk. An official penalty determination will come later when you file your 2023 state tax return.
Federal Exemptions
The fee for not having health insurance (sometimes called the “Shared Responsibility Payment” or “mandate”) ended in 2018. This means you no longer pay a tax penalty for not having health coverage. If you don’t have health coverage, you don’t need an exemption to avoid paying a tax penalty.
However, if you’re 30 or older and want a “Catastrophic” health plan, you must apply for a hardship exemption or an affordability exemption to qualify. Learn about exemptions and Catastrophic coverage.