QUESTION

An agent offered to sell me a policy that pays $100 per day when you’re in the hospital. Does that count as minimum essential coverage?

Individuals with coverage | Individual and Marketplace Health Coverage
ANSWER

No. Some types of coverage do not qualify as minimum essential coverage. These include hospital indemnity policies (that pay a fixed dollar amount per day when you are hospitalized), discount plans, short-term nonrenewable policies, or plans that provide coverage only for a specific disease (i.e., cancer-only policies). Companies that sell these products, also called “excepted benefit,” plans are required to notify you that they don’t qualify as minimum essential coverage. If you receive such a notice, and don’t obtain other coverage that is minimum essential coverage, you may have to pay a tax penalty. (26 U.S.C. § 5000A; 45 C.F.R. 147.200).

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