What must individuals without Minimum Essential Coverage (MEC) obtain to avoid penalties?

To avoid penalties under the Affordable Care Act, individuals without Minimum Essential Coverage (MEC) must obtain an exemption and extension. This is because the law establishes a requirement for certain individuals to have health coverage. If they do not meet this requirement, they may face a penalty at tax time unless they qualify for an exemption.

Exemptions can be granted for several reasons, such as financial hardships, specific life situations, or short gaps in coverage. In some cases, individuals can apply for extensions on these exemptions, allowing them more time to secure proper coverage without incurring penalties.

The need for an exemption and extension focuses on compliance with health coverage mandates and ensuring that individuals are not unduly penalized for circumstances that might prevent them from obtaining coverage. This underscores the program's emphasis on balancing coverage availability with individual circumstances.