Can I go without insurance?

Important Dates

November 1, 2015:
Open enrollment for Connect for Health Colorado re-opens and you can see if you qualify for financial assistance.

January 31, 2016:
Connect for Health Colorado open enrollment period for 2016 closes, but you can still apply and get covered if you have a qualifying life event. Medicaid enrollment is year-round.

April 15, 2016:
Unless you are exempt, you must provide proof of insurance when filing your 2015 taxes. Go to for more information.

To find out if you are required to have health insurance visit the Kaiser Family Foundation decision tool.

Starting in January 2014, most people are required to have health insurance coverage or pay a penalty if they do not. Coverage may include employer-provided insurance, coverage an individual purchases on their own, Medicaid, Child Health Plan Plus (CHP+), Medicare or TRICARE.

The video is also available in Spanish.

The requirement applies to individuals of all ages, including children. An adult or married couple who can claim a child or another individual as a dependent for federal income tax purposes is responsible for making the payment if the dependent does not have coverage or an exemption. For more information, check out the Internal Revenue Service (IRS) fact sheet about making a shared responsibility payment.

Exemptions from the Individual Responsibility Payment

Though most people will be required to have insurance, several groups are exempt from the requirement to obtain coverage or pay the penalty, including but not limited to:

  • people who are uninsured for less than 3 months of the year
  • people who would have to pay more than 8% of their income for health insurance
  • people with incomes below the threshold required for filing taxes. (Not sure if you are required to file taxes? Click here to learn more.)
  • members of a federally recognized tribe or anyone eligible for services through an Indian Health Services provider
  • members of a recognized health care sharing ministry
  • members of a recognized religious sect with religious objections to insurance, including Social Security and Medicare
  • people who are incarcerated, and not awaiting the disposition of charges
  • people who are not lawfully present in the U.S.
  • people who qualify for a “hardship exemption

Coloradans who want to apply for an exemption should submit the appropriate form to the federal government to receive an exemption code. Then Coloradans will need to provide the exemption code into the Connect for Health Colorado website to gain access to catastrophic health plan options.

Get more information about how to apply for an exemption to the individual mandate in Colorado.

The Penalty for 2014 and Beyond

The penalty for people who forego insurance is the greater of two amounts: 1) a specified percentage of income or 2) a specified dollar amount.

  1. The percentages of income are phased in over time at 1% in 2014, 2% in 2015, and 2.5% starting in 2016.
  2. The dollar amounts are also phased in at $95 in 2014, $325 in 2015, and $695 beginning in 2016 (with annual increases after that).

The penalty is also capped at an amount equal to the national average premium for the lowest cost bronze health plan available through the Marketplace.

If you’re uninsured for just part of the year, the penalty will be pro-rated, meaning 1/12 of the yearly penalty applies to each month you’re uninsured. If you’re uninsured for less than 3 months, you will not have to pay a penalty.

Proof of Coverage Provided by Your Health Plan

Health insurance plans will provide documentation to clients to prove they have the minimum coverage required by law. When you file your 2014 tax return you will have to enter information about your coverage status, or if you were eligible for an exemption, on your tax return. Insurers will provide a notice to you by January 31, 2015 that describes your coverage status during the previous year.

Connect for Health Colorado customers can review Taxes Frequently Asked Questions to learn more about the form they will receive as proof of insurance.

The federal government will be overseeing the enforcement of the mandate. Please contact the Internal Revenue Service (IRS) for more information.