What’s this about California increasing the MAGI income that you can get subsidies from 400 to 600%?
What’s this about having the Mandate Penalty back?
California under Gov Gavin Newsum passed a new budget which increases the premium subsidy qualification amount from 400 to 600% and bring back the mandate penalty CA Health Line * LA Times 6.27.2019 * Sacramento Bee 6.13.2019 * CA Health Line * to fund it. Proposition 25 allows the legislature to pass the budget and doesn’t need the Governor to sign it.
The average household tax credit in this category would be $144 per month, according to Covered California. For example, a couple, both 62, living in the San Francisco Bay Area making $72,000 a year doesn’t qualify for federal tax credits. They now pay a $2,414 monthly premium — or about 40% of their income. That couple could qualify for a $1,613 state tax credit under Newsom’s proposal, lowering the cost of health insurance to about 13% of their income, according to a Covered California analysis.
The budget agreement includes an additional $450 million over three years to fund insurance subsidies after some lawmakers argued mandate revenue alone wouldn’t make health insurance affordable. Sacramento Bee 6.13.2019 *
Franchise Tax Board (FTB) Would Administer State Mandate.
The administration has indicated that FTB, which administers the state’s personal income tax, would implement the proposed state individual mandate penalty. This would be similar to the federal individual mandate penalty that is administered by the federal Internal Revenue Service (IRS).
Covered California Would Administer State Subsidies.
The Governor’s proposal assumes that Covered California would administer the proposed subsidies. Details on implementation are yet to be determined. Legislative Analysis Office * Click here to get quotes and FPL analysis.
Bibliography, Resources & Links
CA fights Trumps attacks on ACA/Obamacare LA Times 8.15.2019 *
SB 65 Affordable Care Access Plus Program
ACA Signups.net – one guys analysis
Budget Act of 2019—Introduced in the Assembly and Senate
Sacramento Bee 6.13.2019
Covered CA Board Meeting Policy & Action Items – 600% 70 pages power point
AB 1810 Covered CA to issue report on affordability
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Gov. Newsum releases his budget