02/08/2018
Hardship exemptions
Hardship exemptions are different from others because they are often temporary and sometimes exempt you from the individual mandate for less than a year. That means that even if you don’t have to pay the full tax penalty for not having insurance this year, you might have to pay part of it, and you may not qualify again next year.
In most cases, you’re exempt from having insurance only during the time you were affected by the hardship. For example, if your utilities were shut off, you’re exempt from having insurance only for the months you were affected by the shut-off.
You may qualify for a hardship exemption if:
You faced eviction or foreclosure in the past six months.
You filed for bankruptcy in the past six months.
You were homeless.
A utility company sent you a shut-off notice.
A flood, fire or other disaster caused significant property damage to your home.
You are a recent victim of domestic violence.
You were ineligible for Medicaid because your state didn’t expand Medicaid.
Your health insurance was canceled for reasons other than nonpayment of premiums, and the plans offered in the marketplace are unaffordable.
You had significant and unexpected increases in expenses while caring for an ill, disabled or elderly family member.
A close family member recently died.
Following an appeals decision, you are now eligible for lower-cost health insurance coverage, but went without it while appealing.
Another person is required to provide medical support to your child, making you not responsible for the child’s penalty.
You encountered “other hardships” in trying to get health coverage, determined case by case.
Unlike the first list of exemptions, these are often vague descriptions. The government handles these individually, so if you think you qualify you’ll have to apply. You can go to Healthcare.gov to find out.
Once you apply for any of these exemptions, it’s up to the marketplace administrators to determine whether you qualify, which can take some time. You’ll have better luck at a quick turnaround if you submit your application before open enrollment starts. If you qualify, you’ll be mailed an exemption certificate number; if your application is denied, you can appeal that decision.
If you don’t have health coverage and won’t qualify for an exemption, we have one recommendation: Start saving up now for the tax penalty.
https://www.nerdwallet.com/blog/health/obamacare-exemptions/
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