Can You Stop Your Health Insurance Coverage for a Few Months and Still Be Covered by ACA?
If you are in between jobs and your employer-sponsored health insurance is about to end, you may be wondering what your options are for health insurance coverage. You may be able to stop your coverage for a few months and still be covered by the Affordable Care Act (ACA).
The ACA allows you to go without health insurance for up to 60 days without incurring a penalty. However, if you go without coverage for more than 60 days, you will have to pay a penalty when you file your taxes. The penalty is $2.50 per day for each day you are uninsured, or $695 per year.
There are a few exceptions to the 60-day rule. You will not have to pay a penalty if you:
Are enrolled in a job-based health plan
Are covered by Medicaid or CHIP
Are eligible for a special enrollment period
Have a hardship exemption
Special Enrollment Periods
If you lose your job and your employer-sponsored health insurance ends, you may be eligible for a special enrollment period. This will allow you to enroll in a health insurance plan through the Health Insurance Marketplace outside of the open enrollment period.
To be eligible for a special enrollment period, you must have lost your health insurance coverage within the past 60 days. You must also meet one of the following criteria:
You lost your job
You were laid off
You had your hours reduced
You became a dependent on someone else’s health insurance plan
You got married or divorced
You moved to a new state
Can I get a short-term health insurance plan?
Yes, you can get a short-term health insurance plan. Short-term health insurance plans are typically less expensive than ACA-compliant plans, but they do not cover as many benefits. Short-term health insurance plans are also not renewable, so you will need to get a new plan once your current plan expires.
What is a catastrophic health insurance plan?
A catastrophic health insurance plan is a type of health insurance plan that has a high deductible and low monthly premiums. Catastrophic health insurance plans are designed to cover major medical expenses, such as hospitalization or surgery.
If you are considering getting a short-term health insurance plan or a catastrophic health insurance plan, you should speak with a licensed health insurance agent to make sure that you understand the coverage and costs.
If you have any questions about health insurance coverage, you can call our licensed agent help line at 1-800-948-6195. We can help you determine if you are eligible for a special enrollment period, find a health insurance plan that meets your needs, and enroll in a plan.
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