News & Updates
Due to the new law (California SB78) signed by Governor Gavin Newsom on June 27, 2019 which institutes an individual mandate to have qualifying health coverage throughout the year beginning January 1, 2020 and to avoid paying penalties when filing 2020 state income tax return in 2021. UnitedHealthcare will allow employees and/or their dependents who previously declined coverage in 2019 a special open enrollment January 1, 2020.
State of California Franchise Tax Board Summary:
The mandate, which takes effect on Jan. 1, 2020, requires Californians to have qualifying health insurance coverage throughout the year.
Many people already have qualifying health insurance coverage, including employer-sponsored plans, coverage purchased through Covered California or directly from insurers, Medicare, and most Medicaid plans.
Under the new mandate, those who fail to maintain qualifying health insurance coverage could face a financial penalty unless they qualify for an exemption.
Generally speaking, a taxpayer who fails to secure coverage will be subject to a penalty of $695 when they file their 2020 state income tax return in 2021. The penalty for a dependent child is half of what it would be for an adult.
The penalty is based on your income and the number of people in your household. To avoid a penalty, California residents need to have qualifying health insurance for themselves, their spouse or domestic partner, and their dependents for each month beginning on Jan. 1, 2020.
View the FTB's website for more information.
For questions, please contact your B&P Sales Rep - 888.722.3373.