03 Nov Covered California Enrollment Opens Amid Uncertainty Over Federal Tax Credits

(Image courtesy of Covered California via Bay City News)

By Sarah Stierch
Bay City News

Open enrollment for health insurance through Covered California began Saturday.

According to the agency, nearly 2 million Californians currently receive their health insurance through the program.

Open enrollment allows residents to sign up for, renew, or shop for new health insurance plans.

The enrollment period comes amid uncertainty about the enhanced federal premium tax credits that make health coverage more affordable. Those credits are set to expire Dec. 31 unless Congress acts to renew them.

Covered California officials said monthly premiums could rise by an average of 97% for more than 1.7 million residents if the tax credits are not extended. Nearly 92% of program enrollees currently receive some form of financial assistance.

The tax credits pay a portion, or all, of an individual’s insurance premium through Covered California, depending on income level.

If the federal credits expire, the state will offer its own assistance for residents earning up to $23,475 annually for individuals or $48,226 for a family of four. Partial assistance will be available for individuals earning up to $25,823 and families of four earning up to $53,048.

Most California residents must have health insurance coverage through Covered California, Medi-Cal, an employer, Medicare or another compliant plan. Those who do not have insurance for all or part of the year may owe a penalty at tax time — $900 per adult, $450 per dependent child under 18, or 2.5% of annual household income, whichever is greater.

The state says the penalty helps keep health coverage affordable and accessible by encouraging everyone — healthy and sick alike — to stay insured. It also offsets taxpayer costs for uninsured care and promotes consistent access to preventive health care.

Eligible residents can apply through Dec. 31. To compare plans or determine eligibility, visit CoveredCA.com.

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