The health insurance penalty for those uninsured can be pretty costly.

Under the Affordable Care Act (ACA) or also known as “Obamacare”, there is legislation that penalizes the uninsured. This rule was created to motivate people to get health insurance but has become unpopular for those who do not want it.

For the year of 2017, the penalty can cost you $695 per adult and $347.50 per child OR 2.5% of your total household adjusted gross income. There is, however, a maximum payment of $2,085 for this penalty. Still a pretty large chunk of change!

 

Health Insurance Penalty Exemptions

Under the Affordable Care Act, there are a few ways to become exempt from paying this penalty. Nerdwallet lists the following:

The current #1 rated healthshare:

Zion Health

4.8
Top Rated Top Rated
Cheap

Zion Health is a fairly new healthshare based out of Utah. They offer super cheap plans and even Direct Primary Care memberships.

• Fast Processing of Needs
• Unlimited Sharing

  • The most affordable coverage costs more than 8.13% of your household income
  • You were uninsured for less than three consecutive months of the year
  • You are exempt from filing a tax return because your income is too low
  • You are Native American or eligible for health services through an Indian Health Services provider
  • Your religion objects to the use of insurance
  • You’re in prison
  • You belong to a health care sharing ministry
  • You have been abroad for more than one year
  • You qualify for a hardship exemption due to an issue such as homelessness, bankruptcy, eviction or similarly trying circumstances, listed here.

Tax Exemption For Healthsharing Ministries

As you can see above, being a part of a “health care sharing ministry” can qualify you for being exempt from this penalty. As a member of Liberty Healthshare, I don’t have to worry about paying this penalty.

Healthsharing ministries are religious organizations that share each other’s medical bills. Normally, with a ministry, each member contributes a “suggested” amount of money each month. Whenever a member needs to pay a medical bill, they submit it to the organization. And if the organization deems it an eligible bill, they will pay it.

There are numerous healthsharing ministries out there that you can join. Our site, Healthsharing Reviews, is dedicated to researching each healthsharing ministry so you don’t have to. You can check out some of our reviews here.