There used to be a federal penalty for not having insurance, but Congress eliminated that beginning in 2019. Several states - including California, Massachusetts, New Jersey, Rhode Island, and the District of Columbia - do have a state penalty for not having insurance, however.
But what does that mean for you?
Chances are, you won't need to do anything differently. If you're like most Americans, you get health insurance through your workplace and you can keep that coverage.
You Don't Have Health Insurance
You have several ways to get insurance to be covered. If you don’t have health insurance, you may qualify for an exemption from your state’s penalty. If you live in one of the states above, check your state’s rules to see what qualifies for an exemption.
You've Found Insurance Too Expensive in the Past
The law provides financial assistance to help people with low and moderate incomes to better afford health insurance. They may:
- Qualify for a subsidy, which is money from the U.S. government to help lower your insurance costs; recently passed legislation provides enhanced subsidies to individuals and families below 150% of the federal poverty line which covers the full premium of the “benchmark” silver plan. People over 400% of the poverty line will have their premiums limited to 8.5% of their income. These enhanced subsidies apply for 2023 to 2025.
- Qualify for Medicaid, the state-federal health insurance program for people with low incomes
You Are an Immigrant
The states that have a mandate also provide state-funded health insurance for some low-income individuals, regardless of immigration status. Check your state to see if you might qualify.
You Already Have Insurance
In most cases, you can keep your current plan and won't need to do anything new. This is true whether you have employer-based insurance, a private plan, or insurance through the Affordable Care Act.
