Massachusetts requires its residents to maintain a minimum level of health coverage or face a state individual mandate penalty. Massachusetts taxpayers who do not maintain coverage that meets minimum creditable coverage (MCC) requirements for themselves and their dependents throughout the year, and who do not qualify for an exception, are subject to state income tax penalties. Employers do not have to provide MCC and are not subject to any penalties for failing to do so.
This Alert summarizes the MCC standards and penalties for failing to maintain MCC. It is relevant for all employers offering fully insured or self-insured group health plan coverage to Massachusetts residents.
