Originally (before HHS modified the rules slightly), a person would have to apply by 2/15/2014 for an effective date of 3/1/2014 to avoid the penalty. That is because the penalty exemption for a "short coverage gap" is only for the FIRST gap of LESS THAN 3 COVERAGE MONTHS. So to be "less than" 3 coverage months, it had to be 2 months of gap or less. Also, notice it has to be the FIRST gap. So, if you have 2 gaps in a year, you won't get an exemption for anything but the first gap. It has to be a CONTINUOUS gap, but more about that later. And the "LESS THAN" is aggregate for the year. So, if you have a gap of 2 months, then insurance, then a gap of 2 months, that equals 4 months, which means it's not a "short" coverage gap and bingo - you lose your exemption for any of the gaps. A coverage month means any month in which you were insured more than 1 day, so terminating it on the 15th of a month still uses up the entire "coverage month".
THEN... in October 2013, a change was made, whereby those ENROLLING IN THE EXCHANGE got until 3/31/2014 to apply without a penalty. The rest of the rules stayed the same. To get this exemption, you have to file a form for a hardship exemption, because HHS simply added this as a qualifying hardship. http://www.cms.gov/CCIIO/Resources/...ownloads/enrollment-period-faq-10-28-2013.pdf
THEN... in December 2013, the "if you like your plan you can keep it" debacle ensued. People were losing their coverage and would get a penalty if they signed up later than 2/15/2014 for an effective date of 3/1/2014. So, the administration decided THOSE WHO LOST THEIR INSURANCE could use the hardship exemption like stated above, and if the marketplace plans are more expensive than the plan they lost, they could buy a catastrophic plan even if they were older than age 30. (This is the rule I remembered in my earlier post.) http://www.cms.gov/CCIIO/Resources/.../cancellation-consumer-options-12-19-2013.pdf
Neither of these changes modify the other rules like it being the first gap, a continuous gap, and less than 3 coverage months. And, speaking of that continuous gap thing, that will apply later this year. If you have a gap in late 2014 (say December), and then that CONTINUES to January and February 2015, the continuous gap is not less than 3 coverage months which means - you know it - you lose the whole exemption.
The individual mandate no longer applies to people whose plans were canceled
THEN... in October 2013, a change was made, whereby those ENROLLING IN THE EXCHANGE got until 3/31/2014 to apply without a penalty. The rest of the rules stayed the same. To get this exemption, you have to file a form for a hardship exemption, because HHS simply added this as a qualifying hardship. http://www.cms.gov/CCIIO/Resources/...ownloads/enrollment-period-faq-10-28-2013.pdf
THEN... in December 2013, the "if you like your plan you can keep it" debacle ensued. People were losing their coverage and would get a penalty if they signed up later than 2/15/2014 for an effective date of 3/1/2014. So, the administration decided THOSE WHO LOST THEIR INSURANCE could use the hardship exemption like stated above, and if the marketplace plans are more expensive than the plan they lost, they could buy a catastrophic plan even if they were older than age 30. (This is the rule I remembered in my earlier post.) http://www.cms.gov/CCIIO/Resources/.../cancellation-consumer-options-12-19-2013.pdf
Neither of these changes modify the other rules like it being the first gap, a continuous gap, and less than 3 coverage months. And, speaking of that continuous gap thing, that will apply later this year. If you have a gap in late 2014 (say December), and then that CONTINUES to January and February 2015, the continuous gap is not less than 3 coverage months which means - you know it - you lose the whole exemption.
The individual mandate no longer applies to people whose plans were canceled
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