WHAT IS COVERED CALIFORNIA?

Covered California is a result of the federal Patient Protection and Affordable Care Act, commonly known as the Affordable Care Act or Obamacare, signed into law in 2010. California was the first U.S. state to create its own health insurance marketplace — or exchange — when it established Covered California in October 2012. It marked the beginning of a new era aimed at making health insurance more accessible and affordable to Californians.

Beginning in 2020, California residents must either:

· Have qualifying health insurance coverage, or

· Pay a penalty when filing a state tax return, or

· Get an exemption from the requirement to have coverage.

Eventhough legislation removed the Federal Tax Penalty in the tax year 2019. The penalty will be $750 or more when you file your 2020 state income tax return in 2021. The penalty for a dependent child is half of what it would be for an adult. A typical family of four that goes uninsured for the whole year would face a penalty of at least $2,000. The penalty will be applied by the California Franchise Tax Board when you file your state tax return. 

The Tax Penalty for Remaining Uninsured
It’s never smart to avoid having health insurance — one accident can lead to an emergency room visit and tens of thousands of dollars in bills, or learning you have cancer when it’s too late to treat it. Now there’s another reason to get insured — taxes.
 

The “shared responsibility payment” is a new tax penalty that Americans have to pay this year if they can afford health insurance but choose not to buy it. It’s called a shared responsibility payment because everyone in the United States is now required to be part of our health insurance system — buying health coverage for themselves and their families rather than relying on others to pay for their care. Those who don't buy health insurance in 2016 may be subject to the penalty, which is $750 per person in a household or 2.5 percent of their income, whichever is greater.

  Plans available with Covered California consists of:

• Bronze 60 
• Silver 70
• Enhanced Silver 94, 87, 73
• Gold 80
• Platinum 90

              HMO AND PPO PLANS