Last week CMS and the IRS came out with proposed rules on exemptions to the health insurance mandate. As you know, PPACA requires individuals to purchase health insurance that meets certain minimum criteria. These regulations create hardship exemptions which exempt individuals from paying the fines.
There are three main exemptions: 1) if it is determined that the coverage available through the health insurance exchange in an individual’s state is unaffordable, the individual would not be subject to a fine 2) individuals which would be eligible for Medicaid, but for their state’s refusal to accept Federal funding to expand Medicaid, are not subject to a fine and 3) individuals who are not required to a file a Federal return are also exempt.
Therefore, the Congressional Budget office estimates that only 2% of the population will actually pay the penalty. This means there will still be a lot of individuals without insurance who are not subject to the fines. At the same time, it