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Yes, non-ACA compliant health insurance would still be deductible as a Medical Expense.

You would still be subject to the ACA penalty unless you qualify for an exemption. 

https://www.healthcare.gov/health-coverage-exemptions/forms-how-to-apply/

Personally, I think if you are going to spend money on insurance, it makes much more sense to have qualifying insurance.  The reason it doesn't qualify is because it is lacking in some important area.


If you are part of a Health Sharing Ministry, that will waive the penalty for not having health insurance, but it is not deductible at all on your tax return.

Personally, I don't see anything wrong with a Healthcare Sharing Ministry.  It's not even necessarily "faith based".  Although I don't know a lot about it, it just seems to be a different version of health insurance that doesn't have all of the red-tape, overhead costs and bloatware, so it is more affordable.


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