While the individual mandate penalty is no longer at the federal level…California has made moves to enact it at the state level, effective January 1, 2020.
California is joining 4 other states who have introduced the individual health insurance mandate at the state level. For Californians this means that individuals will be required to hold Minimum Essential Coverage (MEC) for themselves and their dependents beginning January 1 2020. Proof of such coverage will be required in 2021 when filing for 2020 taxes.
State residents that go without coverage will be subject to a tax penalty. Here's a simplified look at the penalty formula $695 for adults, $347.50 each child OR 2.5% of annual income (whichever is GREATER)
Revenue collected from the individual mandate penalties will go toward the state's new subsidy program. The program is designed to lower the cost of health care for low and middle income Californians. Now, those making between 400% - 600% above the federal poverty line will be eligible for subsidies. For more info on income limits & program eligibility check out: www.healthforcalifornia.com