Health Reform - Limited exemption from Individual Mandate

( Marc Altneu is a local insurance professional specializing in benefits and the Affordable Care Act; marc@mcmagency.com)

On December 19, 2013, the Department of Health and Human Services allowed individuals whose individual policies are set
to be cancelled in 2014 to apply for a hardship exemption. Individuals will apply for this exemption and will need to indicate that
their current health insurance policy is being cancelled and that they consider other available policies unaffordable. HHS must
determine that the individual has suffered a hardship with respect to the capability to obtain coverage under a qualified health
plan.
Individuals granted a hardship exemption can then avoid the individual mandate tax if they enroll in catastrophic coverage
under the Marketplace which is on average 20% cheaper than other plans available under the Marketplace. Otherwise,
catastrophic coverage plans are limited to individuals under age 30. Alternatively, individuals granted a hardship exemption
without coverage can avoid the individual mandate tax.
For further information, visit the following websites:
http://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/cancellation-consumer-options-...
http://marketplace.cms.gov/getofficialresources/publications-and-articles/hardship-exemption.pdf
https://www.healthcare.gov/can-i-buy-a-catastrophic-plan/