Californians Must Have Health Insurance In 2020, Or Face Penalty
A new state law going into effect on January 1st, 2020, requires Californians to have health insurance in 2020 or face a penalty on their state taxes. The penalty is as follows:
- $695 for each adult ($347.50 for each child) up to a maximum of $2085 or 2.5% of your household income* above California’s income tax filing threshold, whichever amount is greater.
This new California law follows the repeal of the individual mandate at the Federal level, which took effect in 2019. California’s individual mandate is part of a state budget deal struck by Democratic legislative leaders and Gov. Gavin Newsom over the summer.
*There is a cap to this 2.5% penalty that is calculated using the bronze plans sold at Covered California, the state’s health insurance exchange.
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