No Obamacare penalty for few in some niche government plans: IRS

The Obama administration on Thursday said people enrolled in some small, government-sponsored healthcare plans will not face a penalty under Obamacare in 2014, even though their coverage does not meet the healthcare reform law's minimum requirements. In proposed rules released by the Internal Revenue Service, the administration said narrowly defined government coverage including programs limited to family planning or tuberculosis-related services through Medicaid do not meet minimum essential coverage standards. Ordinarily, President Barack Obama's Patient Protection and Affordable Care Act would require someone who lacks minimum coverage to pay a penalty. But the IRS is proposing that individuals in certain plans pay no penalty for failing to have minimum essential healthcare for this year.