Hardship Exemption

What is a Hardship Exemption?

Hardship refers to the situation that doesn’t let the person secure health insurance. If you manage to get the hardship exemption, meaning, you are not going to need to pay a penalty or charges for not securing the health insurance during the tough times. However, you need to be eligible for a hardship exemption to avoid paying the penalty for being uncovered during the hardship period.

Only individuals that meet the hardship exemption eligibility will be provided with this exemption. People are supposed to get either minimum health coverage or pay a specific amount as a fee for staying uncovered. However, if you couldn’t purchase the health insurance due to a certain event, then you can qualify for the hardship exemptions. If that happens, you will not have to pay a single penny as the fee for not getting covered.

An Overview of the Hardship Exemption

Starting in 2019, the penalty associated with people who don’t get health insurance is no longer considered valid. Now, as the name suggests, the hardship exemption covers the period prior to, during, and post the hardship. In some cases, the government can extend this duration for up to 12 months. Let’s take a look at the factors that make you eligible for the hardship exemption:

• You got evicted from your home
• You have been unable to pay your utility bills and hence received the power shut-off notice
• You have endured domestic violence
• Your close family member expired in the past 3 years
• Your property got damaged due to a natural disaster, such as earthquake, flood, fire, etc.
• You are declared insolvent by the Bank
• You could not pay the medical bills and health expenses in the past 1 year
• You had to pay for unexpected expenses, such as taking care of an ill or disabled family member

These were only to name a few. You can qualify for hardship exemptions if you were not in a financial position to get the minimum health coverage. If you meet any of the following eligibility requirements, you can apply for the hardship exemption at any health insurance company.

The Process of Applying for the Hardship Exemption

As of 2018, people who are eligible for hardship exemption do not have to fill the application form and submit it to the health insurance company. You can claim this benefit on your federal Tax Return. You could also use the traditional form-filling method to apply for the hardship exemption. How long the exemption last depends largely on your situation and the reasons you were unable to get the minimum coverage. The marketplace can extend the duration for one year depending on your condition.

As soon as your request for hardship exemption gets approved, you will no longer be required to pay a penalty for being uncovered during the hardship period. However, it only lasts for a small duration. Once this period expires, you will need to get the minimum health Insurance Coverage.