4 Major Changes in Healthcare for 2020

Healthcare is always changing so it’s important to stay in the loop, not just for you but also for your loved ones.

  1. Beginning Jan. 1, 2020, California will be the first state in the nation to provide a new subsidy program that will help lower health insurance costs for low and middle-income residents. Those who earn between 400% and 600% of the federal poverty line (FPL) will be eligible for premium tax credits. (see chart below).
  2. California is restoring the individual mandate penalty. Under Obamacare, there was a tax penalty for those who could afford insurance but didn’t have it. The penalty was eliminated by the Tax Cuts and Jobs Act of 2017, but California lawmakers have chosen to reinstate the penalty. The money from the penalty will fund the new subsidy program.
  3. The new state initiatives resulted in premium decreases between 2 and 5% per carrier.
  4. Covered California announced that three health plans are expanding their coverage area.
    1. Anthem Blue Cross will now be available in the Central Coast, Los Angeles County, parts of the Central Valley and the Inland Empire.
    2. Blue Shield of California is expanding its HMO into parts of Tulare and Riverside counties.
    3. Chinese Community Plan will cover all of San Mateo County.