Scenario:

• my mother-in-law lives with me and I'm reporting her as a dependent for 2014
• we moved from a state where she had insurance under Medicaid (she's 64).
• Texas (our new home) denied her medicaid
• Unfortunately, Texas gave her MAP (Medical Assistance Program) and I did not realize that it does *not* qualify under ACA

Consequently, now it looks like I'm on the hook to pay a penalty (since I'm responsible for her).

However, my tax program tells me that there's an exemption under "medicaid ineligibility in non-expanded medicaid states".

But I'm having a hard time understanding if we qualify for that exemption.
There also seems to be two options for that --- by applying on taxes and by applying thru the marketplace.