Affordable Care Act Update: New Hardship Exemption Announced

Health Care

Just days before the new December 24 deadline to enroll in health care coverage to start January 1, the Obama administration announced on December 20th, that it will waive the individual mandate under the Affordable Care Act for those individuals who receive cancellation notices due to their health plans not meeting minimum requirements under the Affordable Care Act.

What Does This Mean for You if Your Insurance Was Cancelled?

  • You may now qualify for the Cancellation Hardship Exemption.
  • You will not pay a tax penalty for 2014 if you don’t purchase health insurance.
  • You may be able to buy a Catastrophic policy in the Health Insurance Marketplace.  These plans were once only available to individuals under 30 or individuals who meet an affordability exemption.

How Do You Qualify for a Policy Cancellation Exemption?

  • To qualify, you can complete a hardship application, which when approved will let you purchase a catastrophic plan or receive a penalty waiver.

Check back with the blog for more up to date information regarding the health care law.

TurboTax is here to help explain health care reform and how it affects you and your taxes, so that you can make the best decision for your health and finances.

Have specific questions about how this impacts you?  Get  health care answers at TurboTax Health

Comments (2) Leave your comment

  1. I am 63 and retired. How do I establish my annual income? I get just over $1260 social which covers my home expenses. I will probably work part time and withdraw from an IRA. Do, I overestimate combining the social security and that I’ll earn maximum dollars allowed by social security? My medical expenses are high as I had breast cancer surgery two years ago and go every three months for testing plus I’m still paying off debt. .

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