Health insurance is one of the most important types of insurances that everyone needs. However, it is usually ignored by people as they consider it as an expense and not as an investment for a contingency plan.
If you are in California and are planning to take health insurance policy in 2020, you should be aware of the changes that recently came up in the system and will be applicable on your policy in 2020. Here is all that you need to know:
- Health insurance in California has become mandatory for all citizens as per the latest government rule in 2020. Also, penalties are being imposed on the residents of the country who are living without health insurance. There are different types of insurances available in the country depending upon the age, the type of employment and more.
- Under Obamacare health insurance in California or ACA, there is even a subsidy on the health insurance of lower or middle-income groups of people. There is a premium tax credit available for the people who fall 400% to 600% below the Federal Poverty Line. The subsidy is provided to the people who fall in this range making the insurance policy plans more affordable for every resident of the country.
- The insurance premiums on all types of insurance policies rise every year. However, in 2020, they are rising by less than 1% which is the lowest since 2014. This is a big relief for the people who had been finding it hard to pay insurance premiums. This is a reduction in the premium by 2-5% depending upon the type of insurance policy you pick.
- In California, you cannot buy a health insurance policy whenever you want. There is a specific duration for buying the policy even if you are buying it from a private insurance provider. The enrollment is open during this duration of 3 months. However, if you want to get the policy outside that duration, you can only get it on special cases like loss of the existing cover of healthcare, marriage or divorce, death in the family, the arrival of a new baby and when you are moving into a different place.
- Besides the relaxation provided by Obamacare health insurance in California, the scope of some popular health insurance policies has been increased. Anthem Blue Cross is now available in the Los Angeles country, Central Coast, Inland Empire and parts of the Central Valley. Blue Shield of California is also undergoing an expansion in 2020. It is going to get into the parts of Tulare and Riverside counties. Besides this, the Chinese Community Plan is set to cover all parts of San Mateo County.
- There are certain exemptions that you can avail from paying the penalty for not having health insurance. People who are not required to file the income tax refund are also not required to maintain the minimum essential coverage while going for the insurance. Besides this, there can be additional exemptions in cases like people who obtain a hardship exemption from the exchange, members of specific religious groups who have a certificate for exemption, people who are enrolled under specified medical programs listed by the government, healthcare ministry members, tribals, non-residents and more.
- The penalty for not buying a health insurance policy is $695 per adult, $347.50 per child or 2.5% of the annual income as applicable. Residents who are underinsured in comparison to the prescribed amount may even face a penalty of $2100 per family.
You are now aware of what to expect from health insurance in California in 2020. Make sure that you follow all the rules to avoid penalty.