Case Study 1: Unaffordability Exemption
Assume no one in Damon's family has coverage or another exemption. Damon is offered coverage from his employer for himself that would cost 8.7% of his household income. Can Damon claim the unaffordability exemption?
Because the coverage costs more than 8.05% of household income, it is unaffordable and Damon can claim the exemption for himself for all months for which he had this employer offer. No other test is needed. If the coverage had been affordable, Damon would not be eligible for the unaffordable coverage exemption. He would not proceed to the other affordability tests.