Minimum essential coverage
Minimum essential coverage refers to any insurance plan that meets the basic requirements for health coverage as laid out in the Affordable Care Act. In previous years, if you could afford coverage but failed to sign up for a plan with minimum essential coverage, you were required to pay a penalty fee, also called the individual mandate.
While this has been abolished on a federal level, some states still have a state-imposed penalty for those who fail to enroll in a health plan (with certain exceptions). These are: California, the District of Columbia, Massachusetts, New Jersey, Rhode Island, and Vermont.
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