OnlyHealthInsurance will once again be assisting our clients and their referrals with health insurance from the private market (also referred to as off-exchange). In 2020, there are two important changes to the California health insurance marketplace; one that applies to those enrolling through the public exchange (CoveredCA), and another that applies to both the public and private exchanges.
1). California is implementing a new state subsidy program which is estimated to qualify 235,000 more Californians for assistance in paying insurance premiums who previously did not qualify. The income limits for the subsidy are higher than the federal ACA premium tax credit subsidy. Where the federal subsidy provided assistance to households with incomes under 400% of the federal poverty line, the state program will provide subsidies to households with incomes between 400% and 600% of the federal poverty level. Subsidies are only available to those who enroll through CoveredCalifornia, the state’s public marketplace. See income chart below. For more information about CoveredCA plans and subsidies visit www.coveredca.com, or call CoveredCA at 800-300-1506.
2). Along with a few other states, California is implementing its own individual tax penalty mandate. The previous penalty on the federal level was removed by law and no penalty applied in 2019. In 2020, permanent CA residents who can afford health insurance but choose not to purchase it, whether through CoveredCA or the private market place, may be subject to a tax penalty which they will see in their state tax filing. The penalty is 2.5 percent of household income or $696 per adult whichever is greater. The money raised will go towards funding the new state subsidy program. To learn more about the penalty and exemptions, visit: https://www.coveredca.com/individuals-and-families/getting-covered/penalty-and-exemptions/
To learn more about the California health insurance marketplace, visit our web page where you can also view an explanatory video: California Health Insurance. For private market insurance information and quotes, visit OnlyHealthInsurance .
