American Indians and Alaska Natives (AI/ANs) and other people eligible for services through the Indian Health Service, tribal programs, or urban Indian programs (like the spouse or child of an eligible Indian) don't have to pay the fee for not having health coverage. This is called having an Indian health coverage exemption.
No penalty for the 2019 plan year and later
- Starting with the 2019 plan year (for which you’ll file taxes in April 2020), the fee no longer applies for anybody, regardless of Indian status. (The fee is sometimes called the “Shared Responsibility Payment” or “mandate.”)
- If you don’t have coverage during 2019, you don’t need an exemption in order to avoid the penalty.
Members of federally recognized tribes, ANCSA Corporation shareholders, and people who are otherwise eligible for services through an Indian health care provider can claim the Indian exemption when filing a federal income tax return.
You can still enroll in health coverage, even if you have an exemption
Having an exemption from the shared responsibility fee doesn’t prevent you from enrolling in a Marketplace health plan, Medicaid, or CHIP. These coverage options are still available to you. You might qualify for certain protections under Medicaid or CHIP, or for lower costs on monthly premiums and no out-of-pocket costs on private insurance through the Marketplace.
Yes. You’ll have to file for an exemption if the only health coverage you have is through the Indian Health Services (IHS) and you don’t have other insurance, such as through your employer or through a federal health program such as the Marketplace, Medicare, Medicaid or the Department of Veterans Affairs (VA).
Yes. You’ll need to submit this form every year you file a federal income tax return and want an exemption.
No. You don’t have to submit a Marketplace paper exemption application, or have an ECN, if you claim this exemption on IRS Form 8965 when you file your federal income taxes each year.