At least two out of five California consumers are still not aware that they’ll face a tax penalty in 2021 if they don’t have health insurance coverage this year. That’s not good since open enrollment ends this month.
The statistic is one of many consumer insights that Covered California discovered earlier this month from surveys it commissioned of state residents. Since open enrollment began in October 2018, the agency has spent millions of dollars worth on advertising to hammer home the message that California’s leaders instituted an individual mandate for health insurance.
“We do not want Californians to face a penalty. We want them to have quality health insurance that gives them access to some of the best doctors and facilities in the nation,” said Covered California Executive Director Peter V. Lee. “Unfortunately, far too many Californians are unaware of the new law or its consequences. That’s why we are working hard to get the message out while there is still time for people to enroll.”
Open enrollment will end in California on Jan. 31, and after that date, consumers can buy insurance only if they lose their employer-sponsored health coverage or go through another qualifying life event that allows them to sign up.
The Covered California-commissioned survey found that 38 percent of insured respondents and 56 percent of uninsured respondents didn’t know that they would face a penalty if they didn’t have health coverage. Covered California contracted with LRWGreenberg, an external research consultant, to conduct the survey.
Nearly a third of uninsured respondents said they are more likely to buy insurance because of the penalty, and virtually that same percentage said they had not looked to see whether they qualified for financial help. Gov. Gavin Newsom and the California legislature extended new state subsidies to middle-income Californians to help them cover the cost of insurance.
Now, individuals making up to $74,940 could qualify for state financial help, and so could a family of four with a household income of up to $154,500. Lee urged everyone not covered by employer-subsidized insurance to go to the Covered California website and check their eligibility.
“All it takes is just a few minutes to find out whether you are eligible for financial help from the federal government, the state, or both,” Lee said. “Do not leave money on the table; do not put yourself at risk if you get sick or ill; do not get stuck with a big bill when you pay your taxes in 2021.”
The average subsidy for eligible middle-income Californians is $469 a month, Lee’s team reported, and for those earning less than 400 percent of the federal poverty level, it’s $447 a month.
In a video released by Covered California, the Jaramillo family of Salinas said they could not have afforded health insurance coverage if it wasn’t for the new subsidies. Between the federal tax credits and the new state subsidy, the family will be paying $57 a month for coverage.
State officials estimate that nearly 560,000 families are eligible for a state subsidy. As of Jan. 4, more than 269,000 consumers had newly signed up for health insurance through Covered California, roughly 18 percent more than at this time last year. More than 1.15 million existing customers have renewed their policies.
“Covered California continues to sign up thousands of people every day, but time is running out, so you need to act now if you want health insurance this year,” Lee said. “We know that deadlines matter to people. Californians have through the end of the month to sign up and select a plan that will protect them and their families.”