Californians Say No Tax Penalty, No Need for Health Coverage

Officials announced that enrollment in Covered California plans dropped 23.7 percent for 2019, largely because of the elimination of the tax penalty for people without insurance.

According to the LA Times. “the decrease was steeper than expected — and larger than the drop in new enrollment in the federal marketplace, healthcare.gov. It occurred even as Covered California, the state health insurance exchange, spent millions on advertising to entice people to sign up for coverage during the open-enrollment period that ended Jan. 15.”

David Panush, president of California Health Policy Strategies, says the drop in enrollment could lead to higher premiums.

“When you have fewer healthy people enrolling, that has an effect on the risk pool. And when you have a sicker pool, that means premiums go up, although so do subsidies,” Panush said. “But for people on the non-subsidized side, that’s a big deal.”

Many insurance agents and brokers like Moore Benefits can tell you that the increased rates and lesser coverage with high deductibles and plenty of exclusions could also be the reasons for the sharp decrease.

Covered California plans are just part of a much bigger picture that HR pros and business owners need to understand in order to keep ruling over this stuff. Your employees probably have questions as these things change and are reported by the news.

Luckily, our team of health insurance and employee benefits experts can help. If you or your staff have any questions about YOUR company’s plans, benefits or additional options out there, just let us know!

Learn Moore:

Enrollments plummet in Covered California health plans with end of tax penalty

https://www.latimes.com/business/la-fi-covered-california-signups-plunge-20190130-story.html

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