Covered California’s open enrollment is under way. It runs through Jan. 15.
The signup period unfurls accompanied by a series of changes. Californians who fail to obtain health insurance again will be penalized come tax time. The return of the “individual mandate” sees a minimum $695 state tax penalty. Gov. Gavin Newsom agreed to that change during the summer.
The state’s middle class will enjoy expanded subsidies in 2020. The new subsidies are for individual residents making between $50,000 and $75,000, and families of four with incomes of $103,000 to $155,000. Covered California analysis project 235,000 additional consumers will be eligible for the new state subsidy program.
The new state subsidies will only be available through Covered California. Lower-income residents could receive federal subsidies.
Still, the state’s Obamacare operation expects to see declines in enrollments for 2020, largely because the more punitive federal mandate to have health insurance has ended. Led by President Trump, the federal government in 2017 killed the Obamacare penalty, effective with this tax year.
Fines under the new California individual mandate will range from $695 to $3,252 a year, depending on income. The penalty should generate as much as $295 million in the next fiscal year.
Covered California’s average rate increase for 2020 will be just under 1 percent, officials have said. Restoring the individual mandate was a key factor in driving premiums between 2 percent and 5 percent lower per carrier, with an average decrease of 3.2 percent, Covered California said. The mandate helps ensure a healthier subscriber pool, thus lowering overall costs.
All 11 health insurance companies return to the market for 2020, and Anthem Blue Cross will expand its coverage areas.
The 2021 open enrollment will run through the end of January, due to a new law ushered in by AB 1309.
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