When the Affordable Care Act was passed, there was a mandate to tax people who refused to buy health insurance. Then Congress voted to abolish the mandate in 2017. And now, at least here in the great state of California, the mandate is back.
The California Legislature voted recently to reinstate the health insurance mandate (effective Jan. 1, 2020) and use the penalty funds collected to subsidize health insurance for the poor. The tax now heads to Gov. Gavin Newsom, who proposed a similar plan in January — an indication he will likely approve it.
Democrats say the plan is part of their efforts to make sure everyone in California has health insurance. If the bill becomes law, California would join Massachusetts, New Jersey, Vermont and Washington, D.C., next year as the only state governments in the U.S. to penalize people who don’t buy health insurance.
Health insurance can be confusing and as you can see, things change fairly often. We like to pass this information along to help you not only understand all of this stuff, but rule it. And if you or your employees have ANY questions about your health plans or other benefits, just contact my team of experts who will be there to help you!