Individuals who had their insurance plans cancelled and cannot find other insurance will be breathing a collective sigh of relief. A recent announcement from the Obama Administration states that such individuals will not be subject to penalties for failing to have health care coverage in 2014. In a letter dated December 19, 2013, Kathleen Sebelius, Secretary of the Department of Health and Human Services (“HHS”), stated that consumers who had their health insurance plans cancelled “should qualify for [a] temporary hardship exemption” and that these consumers will also “be able to buy a catastrophic plan to smooth their transition to coverage through the Marketplace.”

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