Examples of health coverage exemptions include unaffordable coverage, general hardship and Indian tribe membership, according to the Internal Revenue Service. Residents of states that have opted out of Medicaid expansion may also be eligible for exemptions. The IRS website contains a complete list of exemptions.Continue Reading
Individuals who meet the requirement for a health coverage exemption avoid having to pay a penalty for not having health insurance as required under the Affordable Care Act, reports the IRS.
If a person's current health insurance meets requirements to be considered unaffordable, then the person may be exempt from the requirement for health insurance, states the IRS. The agency also gives exemptions if the taxpayer has a hardship that prevented them from obtaining health insurance. Recognized members of a federally recognized Indian tribe are also exempt from paying taxes for not having health insurance.Learn more about Health Insurance