Applications must be filed to support exemption requests. In general the exemptions will be in force only for the calendar year when the application is submitted.
Typically, the state health exchange will be in charge of granting certificates of exemption in the hardship and religious categories. The Internal Revenue Service, however, will exclusively handle the exemptions for illegal immigrants, individuals with household income below the tax filing threshold, individuals who cannot afford coverage, and individuals who experience a short coverage gap through the tax filing process.
The rule provides a choice to individuals for the exemptions in these categories: members of a healthcare sharing ministry, incarcerated individuals, and members of recognized Indian tribes. These exemptions could be provided either through a health insurance exchange or through the IRS.
The rule goes into effect on August 26.