New Covered CA for 2020: the Return of the Individual Mandate and Tax Penalties
In addition to changing the income eligibility and rates for Covered California plans, California lawmakers have brought back the individual mandate for the upcoming 2020 coverage year. That means that California residents will once again be required to carry health insurance in 2020, or face a penalty when filing their taxes.
Does this apply to me?
The mandate applies to anyone whose health care costs do not exceed a certain percentage of their income. Individuals with hardships, whose cost of coverage exceeds a certain portion of their income, may be exempt from the penalty.
How much will I be penalized if I don’t have insurance in 2020?
If you choose to go without coverage in 2020 you could be subject to paying a penalty of 2.5% of your household income, or a minimum of $695 per adult, whichever is greater. So if you are single and your income is $50,000 in 2020, you would have to pay $1,250. But if you are in a household of 2 adults then you would have to pay $1,390. Either way, it’s a significant amount of money, not to mention the other risks of going without some kind of insurance coverage.
What should I do if I don’t currently have coverage?
There are many options out there! If you are worried about the cost of coverage, give us a call, email us or stop in to our offices to find out what options there are for you. Plus, Covered California rates and plans are changing for 2020, which means if you were at the edge of being eligible for discounts, you might be eligible in 2020!