Get Ready for 2020 Open Enrollment

When California residents sign up for health insurance during open enrollment 2020, they will have access to new discounts and subsidies under the state's new Covered California program. This initiative is designed to expand on the Patient Protection and Affordable Care Act to help more state residents access high-quality health care through affordable health insurance coverage. Read on and review the answers to all your open enrollment questions before you sign up on October 15.



How Does Covered California Make Health Insurance More Affordable?

 
With this program, qualifying individuals and families will receive a state subsidy to help pay for their health insurance premiums. The amount of the monthly subsidy varies by family size, age, household income and the regional cost of health care.
 
Households earning less than $74,940 for one person or $101,490 for two person household will qualify for a covered California health insurance subsidy. Families earning less than 138% of the federal poverty limit ($35,535 for four people) can access the state's benchmark plan for as little as $1 per month.

When Should I Sign Up for Health Insurance?

 
Open enrollment extends from October 15, 2019, to January 15, 2020. However, you must enroll before December 15 for coverage to take effect on January 1, 2020. Those who miss that deadline but sign up by mid-January will have effective coverage on February 1, 2020. 

Only residents who have a qualifying life event can apply for health insurance coverage outside of open enrollment. These circumstances may include:

• Having or adopting a baby
• Losing eligibility for coverage under a parent's health care plan because of age or graduation from college
• Getting married
• Losing a spouse to death or divorce
• Moving to California from another state
• Losing your job

 
If you qualify for Medi-Cal, you can enroll at any time of year. Those who qualify for the Children’s Health Insurance Program are also not confined to open enrollment.

What Are the Income Limits to Receive the Subsidy?

This year, the income threshold to qualify for a health care subsidy has been nearly doubled by Covered California. A single-person household can earn up to $74,940 and still be eligible, compared to $37,470 for 2019 eligibility. This change is projected to benefit nearly 1 million additional California residents who previously did not qualify for the subsidy.

What if I Do Not Obtain Coverage?

 
During open enrollment 2020, you can either buy a new health care plan, renew your existing plan or sign up for Medi-Cal if your household income is below 128% of the federal poverty threshold for your area. California residents who do not have health care coverage are subject to a tax penalty. For 2020, this will be calculated at $695 per adult without health insurance or 2.5% of household income, whichever is greater.
 
As an independent health insurance agency, Sackett & Associates Insurance Services helps California families get covered. If you have questions about the new subsidy program or you want to request a health insurance quote, contact us today to talk to an agent who is certified with the Covered California program.