Covered CA Subsidy Increase to 600% FPL
California under Gov Gavin Newsum passed a new budget which increases the premium subsidy qualification amount from 400 to 600% and brings 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 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 *
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Would Administer State Mandate Penalty
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.
APTC Premium Subsidy Covered California
- APTC Advance Premium Tax Credit – Subsidies – Introduction
- 8962 Premium Tax Credit APTC Instructions
- Affordable Employer Health Coverage? Employee ONLY 9.61% Family Glitch
- Age 65 – Can you get Tax Credits Subsidies Covered CA?
- Premium Subsidy to 600% FPL
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- VIDEO on ARPA Stimulus and more Covered CA Subsidies
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- Our Quote Engine Takes all the complexity out of using pencil and paper to figure out the premiums per the Obamacare/ACA rules under CFR §1.36B-3 *
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Bibliography, Resources & Links
- CA fights Trumps attacks on ACA/Obamacare LA Times 8.15.2019 *
- KHN Kaiser Health News – subsidies – penalties
- SB 65 Affordable Care Access Plus Program
- ACA Signups.net – one guys analysis
- Legislative Analysis Office
- KFF FAQ 3 questions
- LAO on Budget
- 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
- Options to improve affordability in CA Health Market 68 pages
- AB 1810 Covered CA to issue report on affordability
- Federally Guaranteed Basic Monthly Income, Happening Now at Covered California Insure Me Kevin.com
- Uh Oh – Covered CA made a mistake in 2020 premiums, something with the new 600% of FPL from State of CA. Here’s copies of the emails that are going out.