Minimum Essential Coverage
The minimum level of health coverage required by the ACA to avoid a federal tax penalty (when applicable).
What is MEC?
Minimum essential coverage (MEC) is a category of health insurance defined by the Affordable Care Act that satisfies the individual shared responsibility requirement under federal law. Plans that qualify as MEC include employer-sponsored insurance, Medicare, Medicaid, CHIP, individual market plans bought through or outside the ACA marketplace, and most government-sponsored plans. The ACA's individual mandate required most Americans to have MEC or pay a tax penalty, but the federal penalty was reduced to $0 starting in 2019 under the Tax Cuts and Jobs Act — though several states (including California, Massachusetts, and New Jersey) have their own individual mandates with state-level penalties. MEC is also the threshold that determines whether an employer plan satisfies the employer mandate for applicable large employers (ALEs). Short-term health insurance and some limited benefit plans do not qualify as MEC.
Example
A California resident who goes uninsured for more than three months in 2024 is subject to California's individual mandate penalty — not a federal penalty. A California-compliant employer-sponsored plan, a Covered California marketplace plan, or Medicare all qualify as MEC and exempt the individual from the state penalty. A short-term health plan does not qualify as MEC in California.
Source: IRS — Minimum Essential Coverage