Hello. I was laid off at the end of July 2014 which also ended my health insurance coverage. At the time I didn’t have the emotional capacity to care about getting insured and I’ve been un-insured since my layoff.
I would like to know if I will have to pay the penalty, and how much it will be if I’m charged with it. Will it be less since I was insured for the half of the year?
Also I have a question regarding getting insured for 2015.
Currently I am unemployed and only just started looking for a job. I decided to search for health insurance for 2015 but I am faced with almost $200/month or higher (according to my previous gross income 2013) when I don’t have the prospect of getting hired or earning money.
Do you know if there is any better option for me? I’m not sure what my 2014 gross income will be as I only worked until end of July.
Can you please help out?
You lost your job, so that qualifies you for a hardship exemption for 60 days starting at the period you lost coverage. You need to apply for that exemption at HealthCare.Gov and need a copy of your cancellation.
This gives you three options. 1) pay the fee 2) get Marketplace coverage via special enrollment 3) look into exemptions.
If you get a Marketplace plan you should understand cost assistance is based on annual income, not monthly. So make sure not to take too many tax credits. Considering not taking tax credits up front, and instead claiming them at the end of the year. We break down the details on all of that here, so make sure to check it out.
If you go with the fee, your penalty is based on your taxable income, for each month you didn't have coverage, minus the months you had exemptions for. It won't be more than $285 for 2014. However, it increases sharply moving forward.
You may also qualify for hardship exemption 13 "You received a notice saying that your current health insurance plan is being cancelled, and you consider the other plans available unaffordable."
What we suggest you do is get coverage in the Marketplace, base your income off of what you project to make. (Since you already filled out your application, simply update your income information). You'll see cost assistance reflecting the amount you project to make in total for the year, which will give you more affordable options.
If you make more than projected during the year you'll have to pay it back when you file your Premium Tax Credit form.