Congress has signed a new health care bill that will eliminate the penalty for not having health care insurance. As a result, the penalty will be eliminated starting January 1st 2019. However, if you live in California, or any other US State, it is still possible to receive a penalty for not carrying health care insurance. This penalty is for consumers who were able to afford health care insurance but chose not to purchase it unless they have an exemption from the health care penalty, in which case the exemption will be upheld.
California Tax Penalty for 2018
For Californians and consumers from the other 49 US States, changes that were enacted at the beginning of 2018 regarding tax penalties are as follows:
Annual Federal Government Health Care Tax Penalty
- If you are a single adult and chose not to carry health care insurance, the tax penalty for these consumers is $695.
- If you are a single adult with a child and chose not to carry health care insurance, the tax penalty for these consumers is $695 for the adult and $347.50 per
- If you are a family and chose not to carry health care insurance for each member, the tax penalty could be up to $2,085 per family.
4 Ways to Avoid Having to Pay the Health Care Penalty in California
There are dozens of reasons and ways that individuals can avoid paying the individual mandate for not having healthcare insurance. However, they are associated with hardship, and Congress has added four new “hardship exemptions.” Two of them specifically impact the state of California.
You qualify for a hardship exemption if:
- You live in an area that does not have any marketplace plans.
- You live in an area/county that only has one health care plan provider to choose from.
- You are not able to locate a marketplace plan that you can afford that doesn’t cover abortions.
- You have special care needs, and you were not able to find a plan in your area that meets these personal needs.
For Californians, Covered California is the only place in the state where consumers can go and get health care insurance for them and their families under the Patient Protection and Affordable Care Act. If you live in a certain area/county in California, and you are seeking a hardship exemption, you might have a solid case to stake your claim. For example, San Benito, Santa Barbara, San Luis Obispo, Monterey, and a few others only have one health care insurance option; Blue Shield of California.
According to California state law, places that offer abortion services are required to be covered in the health care marketplace plans, and also by Medi-Cal, California’s version of Medicaid. So, if your family values align with number three from above, and you live in California, you would be eligible for a hardship exemption to avoid paying the health care tax penalty.
To learn more about enrolling in Medicare, or what the penalty is for not having health insurance in your county of California, contact the professionals at HealthQuoteInfo.com at (855) 614-5057. Our licensed insurance experts will be happy to answer any questions you have.