Massachusetts requires most residents age 18 and older to have health insurance that meets the state's Minimum Creditable Coverage (MCC) requirements. If you went without qualifying coverage for part of the year, Schedule HC may ask a series of affordability questions to determine whether you qualify for an exemption from the Massachusetts health insurance penalty.
Program Entry
To complete the Affordability Questions section:
- State
- Edit Massachusetts Return (Click the 3 dots)
- Health Care Information – Schedule HC
- Taxpayer/Spouse – Health Insurance Information
-
Choose an answer for:
"Indicate the time period that you were enrolled in a Minimum Creditable Coverage (MCC) health insurance plan(s). If NO MCC/NONE skip to Exemption Questions."
- Affordability Questions
When Do I Need to Complete the Affordability Questions?
You generally need to answer these questions if:
- You had no health insurance during the tax year.
- You had health insurance that did not meet MCC requirements.
- You were without MCC-compliant insurance for four or more consecutive months.
If you had MCC-compliant coverage all year, you usually won't need to complete this section.
What Does "Affordable" Mean?
Massachusetts doesn't automatically assess a penalty just because you were uninsured.
Instead, the state determines whether affordable health insurance was actually available to you based on:
- Your household income
- Your family size
- The cost of available insurance options
Massachusetts compares your income to affordability standards published annually by the state. If available coverage exceeded those affordability limits, you may qualify for an affordability exemption.
You can access the affordability worksheet here.
What Types of Insurance Are Considered?
Employer-Sponsored Health Insurance
This includes health insurance offered through an employer.
The affordability review considers whether the employee's required premium contribution for coverage that met MCC standards was affordable based on income.
If affordable employer-sponsored coverage was available and not purchased, a penalty may apply.
Government-Subsidized Health Insurance
Massachusetts also evaluates eligibility for subsidized health coverage, including:
- ConnectorCare plans
- Health Connector subsidized coverage
- Other government-assisted health insurance programs
Taxpayers who qualified for affordable subsidized insurance but chose not to enroll may be subject to a penalty.
Private Health Insurance
If employer-sponsored or subsidized coverage was not available, Massachusetts considers whether an individual could have reasonably afforded a private health insurance policy that met MCC standards.
Questions You May Be Asked
Depending on your situation, the software may ask:
Did Your Employer Offer Affordable Health Insurance?
Answer based on whether:
- Coverage was offered by your employer, and
- The employee cost was considered affordable under Massachusetts guidelines.
If Employer Coverage Was Not Affordable, Were You Eligible for Government-Subsidized Health Insurance?
The software reviews your income and household size to determine potential eligibility for programs such as ConnectorCare or other subsidized plans.
Were You Able to Afford Private Health Insurance?
If neither employer-sponsored nor subsidized coverage was available, Massachusetts evaluates whether private coverage would have been affordable based on your income and age.
Federal Poverty Level Review
Some taxpayers automatically avoid the penalty because their income falls below a certain threshold.
For 2026, taxpayers whose income is at or below 150% of the Federal Poverty Level (FPL) are generally exempt from the health insurance penalty.
What Happens If I Qualify for an Affordability Exemption?
If the affordability calculations show that health insurance was not reasonably affordable, you may qualify for an exemption and:
- No Schedule HC penalty will be assessed for the applicable months.
- The software will calculate any available exemption automatically based on the information entered.
- You may avoid the Massachusetts individual mandate penalty even though you were uninsured for part of the year.
What If I Do Not Qualify for an Exemption?
If Massachusetts determines that affordable MCC-compliant coverage was available and you did not obtain it, a health care penalty may apply.
The penalty is calculated using household income, family size, and the number of uncovered months.
In some situations, taxpayers may still be able to appeal the penalty based on hardship or other qualifying circumstances.
Important Notes
- An affordability exemption does not automatically apply simply because you were uninsured.
- Massachusetts reviews income and available insurance options when determining eligibility.
- Taxpayers may qualify for an affordability exemption even if uninsured for part of the year.
- Affordability is only one of several possible Schedule HC exemptions.
- If you qualify for an affordability exemption, you may not be subject to a Massachusetts health insurance penalty for the applicable months.
- Most Massachusetts residents age 18 and older are required to maintain health insurance that meets MCC standards or qualify for an exemption.