State Didn’t Expand Medicaid, Do I Owe the Fee? Twitter Facebook If my state did not expand Medicaid will i have to pay a penalty? Answer If your state didn't expand Medicaid, simply apply for Medicaid and use your rejection letter to get a hardship exemption at HealthCare.Gov. Not only do you not have to pay the fee, you can also get low cost catastrophic coverage. Rate and Comment on the Answer Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Save my name, email, and website in this browser for the next time I comment. Rate this Answer (1-5)* 1 2 3 4 5 This site uses Akismet to reduce spam. Learn how your comment data is processed.