No Penalty for Gaps in Health Insurance Coverage Under ACA

Is There a Penalty for Not Having Health Insurance?

Previously, the Affordable Care Act (ACA) included an individual mandate requiring almost everyone to have health insurance or pay a penalty. However, the penalty was eliminated in 2019.

As a result, there is no longer a federal penalty for not having health insurance. However, some states may still have their own individual mandates and penalties. It’s important to check your state’s laws to see if you may be subject to a penalty.

Does the Gap in Coverage Matter?

The length of time you go without health insurance does not affect whether or not you will face a penalty. Even if you go without insurance for several months, you will not owe a penalty.

Example: A user was concerned about a 2-3 day gap in health insurance coverage between jobs. However, according to current laws and regulations, they will not face any penalty for this gap in coverage.

COBRA Coverage

If you lose your job-based health insurance, there is an option for you to get continued coverage under COBRA. COBRA coverage allows you to extend your employer’s group health plan for a limited time (generally 18-36 months). However, COBRA coverage can be expensive, so it’s important to consider your options before enrolling.

Other Options

If you are not eligible for COBRA or cannot afford it, there are other options for getting health insurance. You can purchase a plan through the Health Insurance Marketplace or directly from an insurance company. You may also be eligible for Medicaid or CHIP.

Seeking Help

If you need help finding health insurance, you can contact a licensed agent or visit HealthCare.gov. These resources can help you compare plans and find the best option for your needs.

Conclusion

There is no longer a federal penalty for not having health insurance. However, some states may still have their own individual mandates and penalties. It’s important to check your state’s laws to see if you may be subject to a penalty. If you lose your job-based health insurance, you have several options for getting continued coverage. You can purchase a plan through the Health Insurance Marketplace, directly from an insurance company, or through COBRA. You may also be eligible for Medicaid or CHIP. If you need help finding health insurance, you can contact a licensed agent or visit HealthCare.gov.