If you are on Medicaid in California or otherwise rely on Covered California insurance to protect yourself, it’s important to keep up with changes to the system! Types of insurance, coverage, and other policies can and do change on a yearly basis. A qualified insurance services provider can help you make sense of your options, but it’s also a very good idea to keep up with the changes as they happen.
So, in this article, we wanted to briefly go over changes that have been made to Covered California insurance policies this year, and what they might mean going forward.
The Four Biggest Changes to Covered California Policies In 2020
- New subsidies
The biggest new addition to Covered California has the potential to do a lot of good. This is the first year that California is offering subsidies to help low- and middle-income Californians afford their Covered California policies. People who earn between 400%-600% of the Federal Poverty Line now potentially qualify for premium tax credits and other rebates.
An estimated 922,000 Californians are eligible to take advantage of this program.
- A return of the individual mandate penalty
On the other hand, California is reinstating the tax penalty for those who can afford insurance but refuse to carry it. These penalties, which can be as much as 2.5% of yearly income, will largely be used to pay for the new subsidies.
However, there are numerous exceptions to the mandate, including officially granted hardship exemptions, tribal membership, religious exemptions, or those with limited-scope coverage.
- Slightly lower premiums
On the other hand, your 2020 premiums are slightly lower – by around 2% – 5% per carrier. This is due to a temporary increase in 2019 going away but will still be welcomed by anyone on a budget.
- Expanded coverage from certain providers
Three common Covered California insurance providers are expanding their coverage area. Anthem Blue Cross is now available in LA County and the Central Coast, as well as parts of the Inland Empire. Blue Shield of California is now offered in Tulare County and Riverside County. Additionally, the Chinese Community Plan now covers all of San Mateo County.
Do you need Covered California insurance, but you don’t know how to start? Good and Associates can help! We specialize in helping people understand the often-complicated California insurance market and find the perfect care plans for their needs. Contact us to get started!