IRS Grants Relief for Plans Not Meeting Minimum Coverage Requirement

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The Internal Revenue Service issued relief (Notice 2014-10) for individual taxpayers who might be subject to the Affordable Care Act shared responsibility payment because they have limited-benefit health coverage that doesn't qualify as minimum essential coverage.
The relief guidance was issued Jan. 23 in tandem with proposed regulations (REG-141036-13) that clarify certain provisions of the health care law under tax code Section 5000A related to the requirement to maintain minimum essential coverage (MEC).
Under the law, individual taxpayers will generally be charged a fee for each month beginning Jan. 1, 2014, in which they didn't maintain a health plan meeting the minimum level of coverage for themselves and any nonexempt family members. A taxpayer may not have to pay the fee if they otherwise qualify for an exemption or include an individual shared responsibility payment with their federal income tax return. MEC plans generally must cover basic comprehensive benefits.

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