We wrote about the carrot for purchasing California health insurance through the Exchanges. Now, let's talk about the stick...the Penalty for not purchasing health insurance. Part of health reform mandates the purchase of health insurance for most people and it creates both subsidies to help purchase it for those individuals up to 400% of the federal poverty level (about $93K for a family of four) and penalties for those individuals who choose not to purchase health insurance across all income levels. We now have these penalty levels for Californians.
The real push of California health reform will begin Jan 1st 2014 when the Exchange is up and running (actually accepting applications October 1st, 2013). It makes sense that the penalties will also begin in 2014. Here's the broad strokes of what to expect.
We still do not have details on the mechanics of the penalty but it's expected to be a tax time concern (accounted for during your tax filing) as opposed to the subsidies which will be accounted for at the time of enrolling. It will be interesting to see how this is assessed for individuals that do not file taxes. We're still expecting guidance on how the penalty will be administered.
The flat dollar penalty is per person in a family up to 3 family members. There is no per person cap on the percentage based penalty and it applies to the family income however it is constituted up to the cost of a Bronze level plan in the Exchange.
Different situations can make a person exempt from the California individual health insurance mandate.
Once criticism of the Health Reform bill's ability to remain solvent is the so-called "weak mandate". This refers to the small penalty ($95 in first year) applied versus the potential premium a person would pay on the market. For example, let's say you have a 45 year old make who makes $45K annually (no or little subsidy). Let's say that person is currently uninsured since our stated goal is to get everyone on board. That person can either pay the 1% penalty ($450 for the year) or pay roughly $300/monthly ($3600 annually). Given the choice of $3600 in premium or $450 in penalty, he may go uninsured. There in lies the issue. Granted, for people that make less, they will get subsidies but the penalty also goes down accordingly since it's based on income. We'll have to see how this plays out but we want to avoid Adverse Selection resulting from a weaker mandate. The Open Enrollment window for California health reform plans may also help to buttress this mandate although money usually dictates decisions on this front.
Again, there is absolutely no cost to you for our services. Call 800-320-6269 Today!
YOU MAY STILL BE
ABLE TO ENROLL
In just 15 minutes:
With Existing Account
We can help you:
If Your Income
Is In This Range
Current Years Estimate; All those that file together on one 1040:
|Single Person:||$16k - $47k|
|2 People||$22k - $64k|
|3 People||$27k - $80k|
|4 People||$33k - $97k|
"My sincere thanks for making a miracle happen- 2014 health insurance !! Many thanks for your expertise and advice yesterday !!"
"Thanks again for your help - I had absolutely no idea how to get this done when I got up this morning. You've made it remarkably easier than I expected. I hope you're not stuck at the office all night..."
"Anyway, I hope you got some time off this past week! Thank you again for your help and efforts on my behalf! I was very lucky to find you."
"I thank you very much for the time that you have invested in handling everything
"I truly appreciate the quick response and will think of you in the future if I need to make any changes to my insurance plans."
"You are awesome... takes a huge worry off my back, thank you for your kind. thanks for your time and kindness. !!"
"Wow, I can't thank you guys enough for your help...I couldn't imagine trying to tackle this on my own!"
"You are my new best friend. A HUGE thank you again.
20 years of experience in the California health insurance market has taught us one thing...Competent and experienced guidance is Invaluable
We can quickly (very important) size up your health insurance needs and clearly explain the options available to you. Our focus is finding the most coverage at the best cost to you.
We are licensed Covered Ca agents with in-depth knowledge of their plans, process, and tax credits.
Call us...you will be Pleasantly Surprised. 800-320-6269
We'll quickly see if you have the best priced plan available and if you qualify for a tax credit800-320-6269
This website is owned and operated by Goodacre Insurance Services, which is solely responsible for its content. This site is not maintained by or associated with Covered California, and Covered California bears no responsibility for its content. The email address and phone numbers that appear throughout the site belong to Goodacre Insurance Services, and cannot be used to contact Covered California.