Beginning January 1st, 2019, New Jersey enacted the “New Jersey Health Insurance Market Preservation Act” requiring New Jersey residents to maintain minimum essential health coverage. This means that all applicable large employers (ALEs), must file 1094-C returns to New Jersey for the 2019 Tax Year and beyond.
The law requires a New Jersey state resident and their family to have minimum essential health coverage (MEC) throughout 2019 or qualify for an exemption of coverage. Failure to have health coverage or qualify for an exemption will result in a SRP when you file your 2019 New Jersey Income Tax return.
Residents may be exempt from the SRP if they have a short gap in coverage, coverage is considered unaffordable, or if they don’t meet the requirements for other exemptions. Individuals who are not required to file a New Jersey Income Tax return do not have to file for exemption. They are automatically exempt from the SRP.
Most basic health coverage satisfies the requirement, including insurance plans through an employer, Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), NJ FamilyCare, or another source that provides MEC. However, employer plans that provide only limited benefits – like vision or dental – do not.