When is it OK not to have health insurance?
Under the Affordable Care Act, it is OK not to have health insurance when an individual qualifies for an exemption by demonstrating that financial or personal circumstances prevented them from obtaining health insurance.
The Affordable Care Act requires most citizens to have health insurance meeting minimum standards.
Failure to maintain health insurance coverage may result in a penalty.
Exemptions may also be granted for:
- Low income individuals if the cheapest plan costs more than 8% of the individual’s income
- Individuals with income below the tax-filing threshold
- Financial hardship
- Undocumented immigrants
- Incarcerated individuals
- American indians without coverage for less than 3 months
- Religious objections
To meet the minimum essential coverage, an individual must have health insurance from a qualified provider such as:
- Government sponsored programs
- Employer-sponsored plans
- Plans in the individual market
- Grandfathered health plans
