ACA Individual Mandate: How Many Months Can You Go Without Health Insurance?
The Affordable Care Act (ACA) requires most Americans to have health insurance. If you don’t have health insurance, you may have to pay a fee when you file your taxes. The fee is based on how long you were uninsured and your income. For tax year 2023, the fee is $330.
How the Fee is Calculated
The fee is calculated based on the number of months you were uninsured and your income. The fee is 1/12 of the annual fee for each month you were uninsured.
For example, if you were uninsured for 6 months out of the year and the annual fee is $330, then you would have to pay $165 (6/12 $330).
If the total fee for your household is less than $330, you will not have to pay any fee.
The household fee is based on the number of months that all members of your household were uninsured. For example, if you and your spouse were both uninsured for 6 months out of the year, then the household fee would be double the amount that you would pay if you were the only one who was uninsured.
Who is Exempt from the Fee
There are a few people who are exempt from the fee, including:
- People with low incomes
- People who are uninsured for less than 3 months
- People who have a qualifying hardship, such as a job loss or a medical emergency
If you think you may be exempt from the fee, you should contact the IRS or consult with a tax preparer.
How to Avoid Paying the Fee
The best way to avoid paying the fee is to have health insurance. You can get health insurance through your employer, through a government program (like Medicaid), or through the Health Insurance Marketplace.
If you can’t afford health insurance, you may be eligible for a subsidy to help you pay for it. You can learn more about subsidies at healthcare.gov/lower-costs/.
If you are uninsured for less than 3 months, you will not have to pay the fee. However, you should still try to get health insurance as soon as possible to avoid any potential penalties or higher costs in the future.
Question? or Need a Free Quote?
Contact Us
Reach out to us for free expert insurance advice and solutions. We will help you solve ACA (Obamacare) related questions and problems. Will contact you within 24 hours of receiving your message.