Covered California’s third annual Open Enrollment season is now underway, but many Californians are still unfamiliar with the relatively new marketplace. In a recent study, officials discovered that about a third of California consumers aren’t sure whether they will be eligible for a subsidy to help with the cost of their health insurance premiums.
The confusion might be due to misinformation about what a subsidy actually is, and help to cover the cost of health insurance plans offered through the exchange.
Subsidies aren’t only for those with very low incomes, either. In fact, 90 percent of the 1.3 million people insured by a Covered California plan are receiving a subsidy to help pay for their premiums! More than 200,000 of these people spend less than 50 dollars per month for their health insurance coverage.
Subsidies are based on income and are available to customers with low or even moderate incomes. A family which is generally considered solidly “middle class” might be surprised to learn that they can receive a subsidy to help pay for their health insurance plan.
More than 4 million Californians are remain uninsured. While some of those are eligible for Medi-Cal, the rest can purchase a health insurance plan on the exchange. With the tax penalty for failing to carry health insurance set to increase this year, all uninsured Californians should consult with a qualified health insurance broker about their options. Many will be surprised to find that health insurance is more affordable than they imagined, thanks to the subsidies.
Are you eligible for a subsidy to cover the cost of your health care? Give us a call to find out. All you need to do is estimate your annual income for next year, and guide you as you compare different health insurance plans.