Exemption from Obamacare Requirements
Under the Affordable Care Act, virtually all Americans are required by law to purchase health insurance. Those who don’t will face a tax penalty of up to 2.5% of their family’s annual income.
However, members of recognized HCSM’s are exempt from this requirement. When filling out their tax return, they simply use IRS Form 8965 to indicate their exemption.
Special Requirements and Conditions
Unlike health insurance plans, healthshare programs are not required to cover pre-existing conditions. In most cases, there will be at least a two year period before pre-existing conditions are covered.
They also generally do not cover cancer for the first 12 months of the policy, and most have a lifetime limit of $1,000,000 in cost sharing.
Because healthshare programs are offered by faith-based groups, they often have additional rules and restrictions. Please read the details thoroughly, so you understand any restrictions on the program you choose.