Massachusetts requires its residents to maintain a minimum level of health coverage or face a state individual mandate penalty. Taxpayers in Massachusetts must indicate if they maintained Minimum Creditable Coverage (MCC) as required by the Massachusetts Health Care Reform Law when completing their Massachusetts personal income tax returns using Schedule HC. Massachusetts taxpayers who do not maintain MCC 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 is relevant for all employers offering fully insured or self-inured group health plan coverage to Massachusetts residents.
