Types of health insurance that count as coverage
For plan years through 2018, to avoid the penalty for not having insurance you must be enrolled in qualifying health coverage (sometimes called "minimum essential coverage").
Starting with the 2019 plan year (for which you’ll file taxes in April 2020), the fee no longer applies.
Examples of qualifying health coverage
- Any health plan bought through the Health Insurance Marketplace®
- Individual health plans bought outside the Health Insurance Marketplace®, if they meet the standards for qualified health plans
- Any “grandfathered” individual insurance plan you’ve had since March 23, 2010, or earlier
- Any job-based plan, including retiree plans and COBRA coverage
- Medicare Part A or Part C (but Part B coverage by itself doesn’t qualify)
- Most Medicaid coverage, except for limited coverage plans
- The Children’s Health Insurance Program (CHIP)
- Coverage under a parent’s plan
- Most student health plans (check with your school to see if the plan counts as qualifying health coverage)
- Health coverage for Peace Corps volunteers
- Certain types of veterans health coverage through the Department of Veterans Affairs
- Most TRICARE plans
- Department of Defense Nonappropriated Fund Health Benefits Program
- Refugee Medical Assistance
- State high-risk pools for plan or policy years that started on or before December 31, 2014 (check with your high-risk pool plan to see if it counts as qualifying health coverage)
See a more detailed list of types of plans that do and don’t count as qualifying health coverage from the IRS.
Health plans that don't count as coverage
Some products that help pay for medical services don't qualify. If you have only this kind of product, you may have to pay the fee for 2018 plans and earlier. Examples include:
- Coverage only for vision care or dental care
- Workers' compensation
- Coverage only for a specific disease or condition
- Plans that offer only discounts on medical services
More answers: Types of health insurance that count as coverage
- What if I have qualifying health coverage for just part of 2018?
The penalty is 1/12 of the annual amount for each month you or your tax dependents don’t have coverage. If you’re uncovered only 1 or 2 months, you don’t have to pay the fee at all. Learn about the “short gap” exemption for the 2018 plan year.
- What if I bought a 2018 individual plan outside the Marketplace? Will I have to pay the fee?
Any plan that meets the standards for qualifying health coverage counts under the health care law. If it does, you won't have to pay the fee when you file taxes in April 2019.
You can buy qualifying health coverage directly from an insurance company, from an online seller, or through an agent or broker.
Before you buy, be sure to find out if the plan you’re interested in qualifies.