To avoid the penalty for being uncovered you must have insurance that qualifies as minimum essential coverage.
If you're covered by any of the following types of plans, you're considered covered under the health care law and don't have to pay a penalty or get a health coverage exemption.
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
Most Medicaid coverage, except for limited coverage plans
Coverage under a parent’s plan
Most student health plans (check with your school to see if the plan counts as minimum essential coverage)
Health coverage for Peace Corps volunteers
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 qualifies as minimum essential coverage)
See a more detailed list of types of plans that do and don’t count as minimum essential coverage from the IRS
Some products that help pay for medical services don't qualify as minimum essential coverage. If you have only this kind of product, you may have to pay the fee. Examples include:
Coverage only for vision care or dental care
Coverage only for a specific disease or condition
Plans that offer only discounts on medical services
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.
Ready to obtain the right health insurance? Check your eligibility for free or low cost health insurance through the marketplace in 4 simple steps...