Learn about the 2024 Health Insurance Penalty in California
Welcome to the world of California health insurance! Did you know that California became the first U.S. state to implement its own individual mandate in 2019, requiring all Californians to have health insurance? This groundbreaking move aimed to make healthcare more accessible and affordable for all residents of the Golden State.
So, if you’re a California resident, it’s essential to know that you must either have qualifying health insurance coverage, obtain an exemption from the requirement to have coverage or pay the 2024 Health Insurance Penalty when you file your state tax return. The Penalty applies to those who do not have health insurance and can be pretty significant, so it’s crucial to stay informed and up-to-date on California’s health insurance requirements.
Whether you’re a long-time resident or just moving to the state, understanding the ins and outs of California health insurance is essential. So, let’s dive in and explore what you need to know about the 2024 Health Insurance Penalty.
What Is a Health Insurance Penalty in California?
A Health Insurance Penalty, also called an uninsured tax penalty or uninsured health care penalty, is a fee you must pay if you do not have a health insurance plan for a tax year. The Penalty for not having health increases every year.
How Much Is an Insurance Penalty in California?
The exact amount of the 2024 Health Insurance penalty will depend on factors such as income, family size, and the cost of insurance.
For 2024, The penalty will be the higher of either:
- A flat amount, based on the number of people in the tax household– $ $900 per adult and $450 per dependent child under 18 in the household when you file your 2023 state income tax return in 2024. A family of four that goes uninsured for the whole year would face a penalty of at least $2,700.
The Penalty for a dependent child is half of what it would be for an adult in 2024.
- A percentage of the household income – Depending on your tax filing status and the number of dependents you have, you will be required to pay 2.5% of the gross income that exceeds the filing threshold requirements.
It’s important to note that if you were not eligible for an exemption and were uninsured for one month, you’ll pay one-twelfth of the fee.
You can visit the Franchise Tax Board’s website and use their Penalty Estimator Tool. To help you correctly calculate how much your 2024 Health Insurance penalty for no health insurance might be.
Who is qualified for an exemption?
It’s important to note that there are certain exemptions to the Penalty. Individuals experiencing financial hardship, have experienced a qualifying life event, or are members of certain religious groups may be exempt from the Penalty. Additionally, those enrolled in certain types of health insurance plans, such as Medicare or Medi-Cal, are exempt. You may be eligible for an exemption waiving the Penalty for not having qualifying health insurance.
Some exemptions require an exemption application, which can be done through Covered California.
How can I Avoid 2024 Health Insurance penalty
If you want to avoid 2024 Health Insurance penalty for no health insurance, you must:
- Enroll in a qualified health plan: To avoid the 2024 Health Insurance penalty, you should be enrolled in a Covered California plan, which typically runs from November and will end January 31st this year. Those who miss the open enrollment period may still be able to enroll if they experience a qualifying life event, such as losing their job or getting married. You can qualify for a government subsidy once enrolled in a Covered California plan.
- Have a Valid Exemption
The following few circumstances can exempt you from paying a tax penalty.
To apply for an exemption under Covered California, you must provide all the required information and acceptable proof for you and your tax household. The application requirements for each type of exemption are explained in detail, and you can find them at Coveredca.com.
If you’re interested in applying, you have different options: you can submit your application online, by fax, or by mail. Instructions on submitting your application can be found at the end of the application form. If you require assistance with your application, don’t hesitate to contact Covered California at (800) 300-1506.
Don’t Risk 2024 Health Insurance Penalty
The 2024 Health Insurance Penalty in California means that those who do not have health insurance will be subject to a penalty. Californians need to explore their options for health insurance and enroll in a plan that works for them and their families. By doing so, they can avoid the Penalty and ensure they have access to the care they need.
Looking for Assistance with Covered California?
Skyline Benefit is a certified insurance agency with Covered California. Act now and get the premium subsidy and coverage that you deserve.
Our agents can review your medical needs and budget, and tailor your health insurance options during Covered California Open Enrollment.
Call us now at (714) 888-5112
2024 Covered California Quote