Best Health Insurance For Young Adults

If you are unable to obtain health insurance due to financial constraints, what steps should you take?

The Affordable Care Act (ACA) requires that most people have health insurance or pay a tax penalty.

If you do not have health insurance through your employer, Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), or another source that satisfies the requirements of the Affordable Care Act (ACA), and you do not qualify for an exemption, you will be required to purchase a health insurance plan through the Health Insurance Marketplace. If you do qualify for an exemption, you will not be required to purchase a health insurance plan through the Health Insurance Marketplace.

If you can’t afford a Marketplace plan, even after subsidies are taken into account, you have other options for obtaining health coverage. 

Depending on your circumstances, you may be eligible for free or low-cost coverage from Medicaid or CHIP. You may also be able to get short-term health insurance. 

Or if you’re experiencing a hardship that makes it difficult to pay for health insurance, you may qualify for a Special Enrollment Period.

1. Medicaid and CHIP Eligibility

You may be able to get free or low-cost coverage through Medicaid or the Children’s Health Insurance Program (CHIP). Coverage from Medicaid and CHIP can provide a comprehensive package of benefits that includes doctor’s visits, hospitalizations, prescriptions, vision care, and dental care.  

Eligibility requirements vary from state to state, so contact your state Medicaid office or CHIP office to find out if you qualify.  If your state has not expanded Medicaid under the ACA and you don’t currently have Medicaid coverage or CHIP coverage, you won’t be eligible for these programs even if your income is below 138% of the federal poverty level.

2. Short-Term Health Insurance

Short-term health insurance plans don’t meet all the requirements of the ACA, which means they don’t cover pre-existing conditions or Essential Health Benefits like maternity care and mental health services. 

They also don’t protect you from having to pay the tax penalty for not having health insurance. 

However, if you’re healthy and only need temporary coverage—for example, because you’re between jobs—a short-term plan may provide some financial protection in case of an unexpected illness or injury. 

Just be sure to read the fine print carefully before enrolling in a short-term plan; there may be some significant limitations on what types of care are covered.  

And remember that short-term plans are not considered qualifying health coverage under the ACA, which means you could still be subject to the tax penalty if you only have one of these plans.

3. Hardship Exemptions from the Tax Penalty

Even if you don’t have any affordable coverage options available to you, in some cases you can qualify for an exemption from the tax penalty imposed for not having health insurance. 

To qualify for a hardship exemption, you must demonstrate that paying for minimum essential coverage would cause undue hardship. There are several different types of hardship exemptions available; visit Healthcare.gov to learn more about each one and how to apply.

Regardless of your financial situation, there are several options available to help make obtaining health insurance more affordable. 

If you’re unable to afford a Marketplace plan after subsidies are taken into account, see if you’re eligible for free or low-cost coverage through Medicaid or CHIP. You may also be able to create a payment plan for your Marketplace premium tax credit when filing your taxes next year.” 

Alternatively, If enrollment period has already passed, you may still be able to qualify for a Special Enrollment Period. Lastly, if Obamacare isn’t working out for you, short-term health insurance plans can provide some financial protection in case of an unexpected illness or injury. Just remember that these plans come with some significant limitations.