What are the options to waive the health insurance penalty?

As of 2019, the individual mandate requiring Americans to have health insurance or pay a penalty no longer exists. However, some states still impose penalties for not having health insurance. If you live in one of these states, there are several options for waiving thehealth insurance penalty.

1. Qualify for anexemption

You may be able to waive the penalty if you qualify for an exemption. Exemptions are available for a variety of reasons, such as financial hardship, certain religious beliefs, and membership in certain groups or organizations. You can apply for an exemption through the Health Insurance Marketplace or through your state's health insurance exchange.

2. Enroll in ahealth care sharing ministry

Health care sharing ministries are organizations in which members share the cost of medical expenses. These organizations are typically religious-based and require members to abide by certain beliefs and practices. Members of health care sharing ministries are exempt from the health insurance penalty.

3. Purchase a short-term health insurance plan

Short-term health insurance plans are designed to provide coverage for a limited period of time, typically up to one year. These plans are often less expensive than traditional health insurance plans, but they may not provide the same level of coverage. Some states may not allow short-term health insurance plans to count as coverage for the purposes of waiving the penalty, so be sure to check your state's regulations.

4. Move to a state without a penalty

If you live in a state that imposes a penalty for not having health insurance, you may be able to avoid the penalty by moving to a state without one. As of 2021, the following states have no penalty for not having health insurance: Alaska, Arizona, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Carolina, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and Wyoming.

In conclusion, there are several options for waiving the health insurance penalty if you live in a state that imposes one. Qualifying for an exemption, enrolling in a health care sharing ministry, purchasing a short-term health insurance plan, or moving to a state without a penalty may all be viable options. However, it's important to carefully consider your options and choose the best one for your individual needs and circumstances. As a knowledgeable insurance advisor, I highly recommend seeking professional guidance when making decisions about your health insurance coverage to ensure you are adequately protected and prepared for any unexpected medical expenses.