When Internet users log on to the official website of the U.S. Department of Health and Human Services, they'll find a large clock, ticking down the number of days, hours, minutes and seconds that people have left until the open enrollment period ends. In short, those people without employee benefits have until March 31 to sign up through the various exchanges, or risk being hit with a $95 penalty at best, or 1 percent of their annual income at worst.
However, in a move that's received little attention, the White House and HHS made an announcement recently that may allow people to not have to pay the fine even if they don't enroll in time.
According to multiple sources, the exemption was published at the same time that the Federal Register was updated, informing people who have grandfathered health plans that they could hold on to these policies until 2016, even if they don't measure up to the 10 provisions for essential health benefits. But, what may be able to get people out from under the individual mandate is if they meet the qualifications for financial hardship.
In other words, if people feel like they won't be able to afford a health policy, that fact alone may prevent them from having to buy a health plan. But as The Wall Street Journal described it, the standard for what serves as a sufficient hardship is decidedly lax.
Sources indicated that in order to establish proof of hardship, consumers will likely have to obtain some form of verification that illustrates they are in trying financial circumstances.
Meanwhile, Kathleen Sebelius, HHS secretary, recently testified before the House Ways and Means Committee. She told committee members that while there have been a number of pushed back deadlines, one that won't be delayed is the open enrollment cutoff date.
