Hardship Exemption From Health Insurance – Do You Apply?
If you don’t have health insurance, you will likely be penalized unless you qualify for an exemption. Most exemptions are clear as highlighted in this flow chart, but some are not as clear and allow for some flexibility. (Note there may also be Exemption loopholes.)
Basic Qualifications for Hardship Exemptions:
1. Something unexpected happened to you that raised your essential living expenses. Such an increase makes health insurance unaffordable.
2. After the cost of health insurance, you would be deprived of food, shelter, clothing, or other necessities
3. Some other circumstance genuinely prevented you from purchasing health insurance.
Detailed Qualifications for Hardship Exemptions:
If any of the circumstances below affect your ability to purchase health insurance coverage, you may apply for hardship exemptions (credit to the Healthcare.gov website).
1. You were homeless.
2. You were evicted in the past 6 months or were facing eviction or foreclosure.
3. You received a shut-off notice from a utility company.
4. You recently experienced domestic violence.
5. You recently experienced the death of a close family member.
6. You experienced a fire, flood, or other natural or human-caused disaster that caused substantial damage to your property.
7. You filed for bankruptcy in the last 6 months.
8. You had medical expenses you couldn’t pay in the last 24 months.
9. You experienced unexpected increases in necessary expenses due to caring for an ill, disabled, or aging family member.
10. You expect to claim a child as a tax dependent who’s been denied coverage in Medicaid and CHIP, and another person is required by court order to give medical support to the child. In this case, you do not have to pay the penalty for the child.
11. Your status was changed as a result of a MNsure eligibility appeals decision.
12. Your individual insurance plan was cancelled and you believe other Marketplace plans are unaffordable.
Considerations Before Applying
1. The hardship must have legitimately prevented you from getting health insurance. There is room for interpretation in this area.
2. Many of the guidelines have time limitations. The facts of the situation will determine the length of time for an exemption.
How to Apply for Hardship Exemption
Minnesotans may apply for a hardship with this application.
Contact Holt Law for help applying for an exemption in Minnesota. This is NOT legal advice.