Uninsured for Less Than Three Months

[SamIam]

I've had three people tell me, one being accountant stating that if someone was uninsured less than three months they are exempt from the penalty. I don't ever remember hearing this or seeing it. Is this true?

 

[bluediamond]

Yes, that is correct.

 

[Yagents]

Key word is under.
Must be 2 months and 29 days or less

 

[xrac]

Another way to game the system.

 

[MBSC]

If you have coverage on March 1, you are deemed to have coverage for the entire month of March. If you somehow manage to gain coverage on June 30, you are deemed to have coverage for the entire month of June.

You can technically go two full months (April and May) plus 30 days in March plus 29 days in June without coverage. The partial months do not count toward the penalty for not having coverage for three entire months.

You're considered covered any month you had minimum essential coverage for even 1 day.
Example: You didn't have coverage from March 2 to June 25. Your coverage gap was 2 months – April and May. You qualify for the exemption.

If your gap was 3 months or more, you can't claim this exemption for any of those months.
Example: You didn't have coverage any day in April, May, or June. You can't claim this exemption for any of those months.

If your coverage gap crosses calendar years, the months without coverage of the second tax year aren't counted for the exemption for the first tax year. But the uncovered months from the first year are counted for the exemption for the second tax year.
Example: Let's say you didn't have qualifying coverage November 2014, December 2014, and January 2015. You're eligible for the short gap exemption for 2014. But for the 2015 tax year, you're not eligible for the short gap exemption for January 2015 because you didn't have coverage for three consecutive months – from November 2014 through January 2015.

If you had 2 or more gaps in coverage during the year you can claim this exemption only for the months of your first coverage gap. This is true even if both gaps are less than 3 months.
Example: You didn't have coverage any day in May or any day in November or December. You can claim this exemption only for May.

Source: https://www.healthcare.gov/exemptions-tool/#/results/2015/details/short-gap

 

[Yagents]

Show me a plan with the 30th as the effective date. Doesn't exist.

 

[RayNY]

Show me a plan with the 30th as the effective date. Doesn't exist.

x2.

I have people point out this scenario every time I have this discussion, and every time, I point out that it just doesn't exist.

Effective dates are the first of the month. Day one of month 3, it's already too late, penalty is on the way.

 

[TN_agent]

I was once on an employer plan that started on the first day of employment with no waiting period. I supposed it is possible if a plan like that still exists.

 

[Ann H]

Employer plans sometimes start mid-month, especially larger sized groups. Medicaid also does.

For IFP, it's non-existent. Sure, temporary plans can start mid-month, but they do not qualify as "coverage" for the short-term gap exemption from the penalty.