Anyone who can show that their individual or family policy has been cancelled, will be eligible to buy a “catastrophic” plan through the exchange and qualify for a “hardship exemption”. See list of reasons below.

This means they would not be fined if they can’t, or don’t, enroll in a health insurance plan. These catastrophic plans, however, cannot get a subsidy.

We can help you with this. Call us for assistance (702) 898-0554

Possible reasons for exemption to the Tax Penalty

Exemptions From Having To Pay The Tax Penalty

♦ The individual is uninsured less than 3 consecutive months

♦ The lowest priced insurance plan available would cost more than 8.13% of the household income

♦ The individual does not have to file a tax return because income is too low

♦ The individual is a member of federally recognized Indian tribe

♦ The individual is a member of a health care sharing ministry

♦ The individual belongs to a religious sect with objections to receive insurance benefits and Social Security and Medicare

♦ The individual is incarcerated

♦ The individual is not legally present in the USA

♦ The individual has a hardship determined by the Dept. of HHS for example:

◊ Become homeless

◊ Has been evicted in the past 6 weeks or is facing eviction or foreclosure

◊ Child is denied Medicaid and CHIP and another person is Court ordered to cover that child

◊ Received a shut-off notice from a utility company

◊ Recent death of a close family member

◊ Recent fire, flood, natural or human-caused disaster resulting in substantial damage to individual property

◊ Filed bankruptcy in last 6 months

◊ Recent domestic violence

◊ Substantial medical debt in the last 2 yrs

◊ Unexpected expenses d/t caring for an ill, disabled, or aging family member

◊ Time frame to appeal and overturn a denial of eligibility to get a Marketplace plan

◊ Lost individual plan and believes other coverage options are unaffordable

◊ Other hardships obtaining health insurance