If you’ve lost your job or experienced a financial hardship, you may be wondering if you qualify for an exemption from the Affordable Care Act (ACA) health insurance mandate. And if you do, whether you’ll be able to get catastrophic health insurance.

What is a hardship exemption?

A hardship exemption is a provision in the ACA that allows people who have experienced a financial hardship to avoid the penalty for not having health insurance. To qualify for a hardship exemption, you must meet certain criteria, such as:

You have lost your job involuntarily.
You have had a significant reduction in your income.
You have high medical expenses.
You are experiencing a family emergency.

What is catastrophic health insurance?

Catastrophic health insurance is a type of health insurance that has a high deductible but low monthly premiums. This type of insurance is designed to protect you from financial ruin in the event of a major medical emergency. However, catastrophic health insurance does not cover preventive care or routine medical expenses.

Can I get catastrophic health insurance if I qualify for an exemption?

Unfortunately, the answer is no. If you qualify for a hardship exemption, you will not be able to get catastrophic health insurance. This is because catastrophic health insurance is only available to people who have health insurance through an employer or government program.

What are my options if I qualify for an exemption?

If you qualify for a hardship exemption, you have a few options. You can:

Pay the penalty for not having health insurance.
Enroll in a health insurance plan through the Health Insurance Marketplace.
Seek help from a licensed agent to find an affordable health insurance plan.

If you are unable to afford health insurance, you may be able to get help from a government program. Medicaid is a government program that provides health insurance to low-income individuals and families. The Children’s Health Insurance Program (CHIP) is a government program that provides health insurance to children from low-income families.

How do I apply for a hardship exemption?

To apply for a hardship exemption, you must complete Form 8965, Application for Exemption from the Shared Responsibility Payment. You can download the form from the IRS website. You must submit the form to the IRS by the tax filing deadline.

If you have any questions about hardship exemptions or catastrophic health insurance, you should contact a licensed agent or tax professional.