Starting Jan. 1, 2019, the tax penalty will be repealed. If you don’t have major medical health insurance for the 2019 coverage year, you won’t be penalized. Learn more about the tax penalty repeal and when it takes effect.
What the repeal means for your health insurance options in 2019
- You have 2 choices of healthcare insurance in this country- ACA Plans (for individuals with major pre-existing conditions or NON-ACA PLANS (for those with no major medical conditions)
Two types of alternative health coverage you might consider
1. Short-term medical insurance/NON-ACA Plans
Short-term medical is designed as temporary health insurance coverage for people who are in between major medical policies. Plans include a range of benefits to help pay for catastrophic medical expenses; Benefit amounts and limits depend on the plan you select.
Short-term plans last from 30 to 364 days with duration limits varying by state.
2. Hospital indemnity insurance
A fixed-benefit indemnity insurance, often known as a hospital indemnity plan, provides benefits that help pay for hospital, surgical and critical illness-related expenses. Benefits are paid as fixed-dollar reimbursements for covered medical expenses at specific durations.
For example, if you were in the hospital for 3 days and had a hospital indemnity plan with a daily inpatient hospital confinement benefit of $2,000 per day, then that plan would reimburse you a total amount of $6,000 ($2,000 per day x 3 days). As with short-term medical and other coverage, hospital indemnity benefit amounts and limits vary by plan.
What if you go without health insurance altogether?
Penalty or not, you may want to obtain some level of coverage, such as a fixed-benefit indemnity plan or short term medical plan,to help pay for covered medical expenses should you experience an unexpected illness or injury.
Why? Well, evidence suggests that uninsured people are less likely to receive healthcare than their insured friends and family, and when they do, they pay more for it.
The numbers don’t lie.