While President Trump and his Republican allies have so far not succeeded in their efforts to repeal the Affordable Care Act, or so-called “Obamacare,” the new tax law adopted by the GOP-controlled Congress in late 2017 did eliminate the individual mandate – or the “Obamacare tax penalty” for not having health insurance.
One important caveat: The penalty is only repealed in tax years 2019 and beyond. If you didn’t maintain qualifying health coverage throughout 2018, you still may face the penalty when you file your tax return in 2019. The penalty for not having health insurance in 2018 is the greater of $695 or 2.5 percent of household income.
Marketplace plans in Tennessee
Five health insurers are offering a variety of individual health plans in Tennessee, but the options differ in each major market.› Chattanooga: Ambetter, BlueCross BlueShield of Tennessee› Knoxville: BlueCross BlueShield of Tennessee, Cigna, Bright Health› Nashville: Bright Health, Oscar Health, Cigna› Tri-Cities: BlueCross BlueShield of Tennessee, Cigna› Memphis: Bright Health, Ambetter, Cigna, Oscar HealthSource: Tennessee Department of Commerce and Insurance
Taxpayers without health insurance can apply for a hardship exemption if they live in an area where they can’t find an an affordable marketplace plan that doesn’t cover abortion or they experience “personal circumstances” that make it difficult for them to buy a marketplace plan, including not being able to find a plan in their area that gives them access to specialty care they need.
Although the individual mandate for buying health insurance was dropped this year, financial advisors still recommend persons buy some level of health insurance if they are not otherwise covered by their employer or a government plan such as Medicare for the elderly or Tenncare for low-income Tennesseans. Those without insurance often have to pay higher rates for medical services and are vulnerable to losing much or all of their income and holdings in the event of a costly accident or illness.