Asked by Lee Muth  |  Submitted April 26, 2016

Is the ObamaCare penalty for not having health insurance pro-rated based on how many months you are without it?

I was laid off from my job. Due to the fact that I made decent money and therefore am getting the higher end of unemployment I have been told I only qualify for a tiny amount of healthcare subsidy, which makes it unaffordable, as even the cheapest plan is more than I am spending on groceries a month! My understanding of the ObamaCare rules is that you can go for 2 consecutive months without health insurance. What if I am 3 months without health insurance and then land a job with health insurance? Am I charged the full penalty or is it pro-rated to account for the fact that out of a 12-month year I had 9 months of coverage? Help.

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  Answers  |  3

April 26, 2016

Lee, the charge is monthly not annually so you would only be charged for the months you did not have coverage. As a self-employed person I have been through this myself. An alternative to traditional health care if you are Christian are several faith-based alternatives, The most popular is Christian Medi-Share. The premium (share) amount is a lot less and overall benefits are better. Since it is religion-based it gets you around the penalty as well.

Good luck with finding another job.

$commenter.renderDisplayableName() | 05.26.17 @ 13:26

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April 26, 2016

This exactly answered my question, thank you Jeremy! Also, I had heard something about Christian alternatives, but it was great that you provided the name of one, I will check that out.

Jeremy Bryant, Senior Financial Consultant & Financial Educator in Charlotte, NC | 04.27.16 @ 17:31

You are welcome. Good luck.

$commenter.renderDisplayableName() | 05.26.17 @ 13:26

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April 27, 2016

The question on the tax forms for health care simply reads "Did you have health insurance for the entire year?" so I would think it is not pro-rated and only applies to full year coverage.

$commenter.renderDisplayableName() | 05.26.17 @ 13:26

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