Is there an exemption for individuals who cannot afford health insurance?

Individuals who cannot afford coverage, meaning the individual’s required contribution for coverage for the month exceeds 8% (indexed annually) of the individual’s household income; as well as taxpayers with income below the filing threshold are exempt from the individual mandate and thus will not be subject to the penalty.

If the individual is eligible for an employer-sponsored plan, the individual’s required contribution is the portion of the annual premium paid by the individual for the lowest cost self-only coverage or lowest cost family coverage that would cover the employee and all related individuals in the employee’s family. If the individual is not eligible for an employer-sponsored plan, the required contribution is the annual premium for the lowest cost bronze plan available in the Individual Marketplace in the rating area in which the individual resides, reduced by the amount of any premium credit received for the taxable year

There are also options that make coverage more affordable.  Individuals with household incomes for the taxable year below 138% of the federal poverty level (FPL) may be eligible for Medi-Cal if they also meet the other eligibility requirements.  Individuals with household incomes for the taxable year between 138% and 400% of the FPL may be eligible for premium assistance through Covered California if they also meet the other eligibility requirements. Individuals with household incomes for the taxable year within 138% and 250% of the FPL may also be eligible for a cost-sharing reduction through Covered California if they meet the other eligibility requirements.