Is Health Insurance Mandatory in 2019?

Federal Rule for 2019

Health insurance is not mandatory under federal law in 2019. The Tax Cuts and Jobs Act of 2017 set the individual mandate penalty to $0 starting January 1, 2019, which effectively eliminated the requirement to hold coverage. There is no longer a federal tax penalty for being uninsured.

What Changed From 2018

Before 2019, the Affordable Care Act required most Americans to have minimum essential coverage or pay a penalty when filing taxes. In 2019, that penalty was removed entirely at the federal level. The change applies to all tax years starting with the 2019 return.

State Mandates That Still Exist

Several states and the District of Columbia have their own individual mandate requirements or penalties, separate from the federal rule. These include California, Massachusetts, New Jersey, Rhode Island, Vermont, and Washington, D.C. Residents of those states may still face a state-level penalty or need to qualify for an exemption.

Who Is Exempt From the Federal Requirement

Even before 2019, exemptions existed for people whose coverage cost more than 8.39 percent of household income, those with very low incomes, members of certain religious groups, and individuals facing hardship. With the penalty now zero, these exemptions are largely of historical interest for 2019, but they remain relevant for understanding the prior structure.

Why People Still Buy Coverage

Although the mandate is gone, many people keep health insurance to avoid high out-of-pocket costs, to access preventive care, or to meet the terms of employer or visa requirements. Coverage also protects against large, unexpected medical bills.

How to Get Covered

Options include employer-sponsored plans, Marketplace plans, Medicaid, the Children's Health Insurance Program, and short-term plans that meet certain federal standards. Open enrollment timing and eligibility rules vary by program.

Key Takeaways

• The federal individual mandate penalty is $0 in 2019.
• Health insurance is voluntary at the federal level.
• Some states still require coverage or impose their own penalties.
• Special enrollment periods apply after qualifying life events.