There is no penalty for not enrolling in a health insurance plan on the federal level, but certain states have their own health insurance requirements. The federal tax penalty for not signing up for a health insurance plan was removed in 2019.
Penalty for Not Having Health Insurance
While there are no federal laws that penalize you for not enrolling in health insurance, it is still essential to look at your state law for any possible penalty. The states where there is still a penalty for not enrolling in a health insurance plan include New Jersey, Massachusetts, Vermont, the District of Columbia, Rhode Island, and California.
How to Avoid Paying A Penalty for Not Having Health Insurance
The only way you can avoid paying penalties in the states where it is in effect is to sign up for a credible health plan in your state. ACA has a specific enrollment period where you can sign up for health insurance plans without being subject to penalty. You can get the plan through your state health insurance marketplaces. During this period, you can also change or switch to a different health insurance plan. When you register during this period, the insurance company must provide you with the health insurance you need.