What is the Penalty for No Health Insurance in California?
The penalty for not having health insurance that qualifies as minimum essential coverage in California in 2021 will result in a fee.
How Much is the Penalty for Not Having Health Insurance in California?
Under the Affordable Care Act penalty, the fee is calculated one of two ways. You’ll pay the higher of these amounts:
2.5% of your annual household income
$695 per adult and $347.50 per child under age 18
There is a state subsidy program that will help lower the cost of health insurance for low and middle-income Californians, creating even more of an incentive to purchase health insurance.
Previously, those who made above 400% of the federal poverty line (FPL) were not eligible for premium tax credits. In 2020, those who make up to 600% of the federal poverty line are eligible for subsidies. This means that a family of four with an annual income of around $150,000 per year will be eligible for subsidies.
The penalty increases every year.
If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured.
If you’re uninsured for less than 3 months, you don’t have to make a payment.
If you owe a fee, you’ll pay it on your 2019 federal income tax return.
The healthcare act or Obamacare opens the door for those who don’t have health insurance. Individuals who need subsidized insurance assistance can get financial help from the federal government to purchase health insurance.
Don’t get stuck with an expensive tax penalty for not having health insurance in 2020. Give Freeway Insurance a call at 877-583-1475 and our friendly, helpful agents will determine if you qualify for free or low-cost health insurance. If you don’t qualify for a subsidy, we can help you find a health plan that fits your needs and budget. You can also request a free California health insurance quote online.