Health Insurance Changes in 2020

     While the federal mandate to have health insurance was repealed in January 2019, California has imposed its own state mandate for individuals to have insurance coverage that goes into effect January 2020.  Those who fail to have a qualified health insurance plan could pay a penalty of 
$695 when filing their 2020 state income tax return.
Dependent children pay half that amount or $347.50.
     Families or individuals whose health-care coverage costs exceed a certain percentage of their income will not have to pay the penalty.  In 2020, it is 8.24 percent of household income to be eligible for an exemption.
     California has also expanded the criteria to be eligible for subsidies based on income up to 600% of FPL (Federal Poverty Level).  What that means is that more people will qualify for premium assistance who may not have qualified in the past.  For example, a family of four with a household income of $154,500 could qualify for help based on the new parameters.
     Annual changes for those on Medicare occur in January 2020 with new deductibles and copays applying for Parts A & B.  The Part A deductible (Hospital Coverage) goes from $1,364.00 to $1,408.00.  The Part B deductible (Medical Services) increases to $198.00.  Daily hospital copays increase to $352.00 for days 61-90 and $704.00 for days 91 and up. Skilled Nursing Facility copays go from $170.50 to $176.00.

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