Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that requires California citizens buy health insurance.

Highlights:

• Requires a California resident to be enrolled in and maintain minimum essential health care coverage for each month beginning on or after January 1, 2020 (Sec. 10).

• Specifies that the amount of the Individual Shared Responsibility Penalty will be equal to the lesser of the following (Sec. 42):

• The sum of the monthly penalty amounts (as determined in the next highlight); or 

• An amount equal to one-twelfth of the state average premium for qualified health plans that have bronze level coverage for the applicable household size involved, and are offered through the Exchange.  

• Specifies that the monthly penalty amount is equal to one-twelfth of the greater of either of the following (Sec. 42):

• The amount equal to the lesser of the following; or:

• The sum of the applicable dollar amounts for all applicable household members who failed to enroll in and maintain minimum essential coverage during the month; or

• 300 percent of the applicable dollar amount for the calendar year.

• An amount equal to 2.5 percent of the excess of the responsible individual’s applicable household income for the taxable year over the amount of gross income that would trigger the responsible individual’s requirement to file a state income tax return for the taxable year. 

• Specifies that except as provided in the above highlight, the applicable dollar amount for penalty is $695, or equal to one-half the applicable dollar amount for an individual less than 18 years old (Sec. 42)

• Specifies that for calendar years beginning after 2019, the applicable dollar amount will be increased by an amount equal to $695 multiplied by the cost-of-living adjustment as determined by the California Consumer Price Index, and if the amount increased is not a multiple of $50, the increase will be rounded down to the next multiple of $50 (Sec. 42).

• Specifies that the following types of individuals will be exempt from the requirements imposed by this act (Sec. 10):

• An individual who has in effect a certificate of exemption for hardship or religious conscience issued by the Exchange;

• An individual who is a member of a health care sharing ministry for that month;

• An individual who is incarcerated for that month, other than incarceration pending the disposition of charges;

• An individual who is not a citizen or national of the United States and is not lawfully present in the US for that month;

• An individual who is a member of a Native American tribe during that month; or

• An individual who is enrolled in limited or restricted scope coverage under the Medi-Cal program or another health care coverage program administered by the State Department of Health Care Services for that month. 

• Requires the Exchange to administer a financial assistance program to help low-income and middle-income Californians access affordable health care coverage through the Exchange (Sec. 11).

• Authorizes the program to provide financial assistance to California residents with household income at or below 600 percent of the federal poverty level, and may provide other appropriate subsidies designed to make health care coverage more accessible (Sec. 11).

• Defines “minimum essential coverage” the same as the Internal Revenue Code (Sec. 10).

• Defines “qualified health plan” as defined by the federal Affordable Care Act (Sec.11 ).

• Defines “Exchange” as the California Health Benefit Exchange, also known as Covered California (Sec. 10).

Vote Smart's Synopsis:

Vote to pass a bill that requires all California citizens purchase health insurance.

Highlights:

• Requires a California resident to be enrolled in and maintain minimum essential health care coverage for each month beginning on or after January 1, 2020 (Sec. 10).

• Specifies that the amount of the Individual Shared Responsibility Penalty will be equal to the lesser of the following (Sec. 42):

• The sum of the monthly penalty amounts (as determined in the next highlight); or 

• An amount equal to one-twelfth of the state average premium for qualified health plans that have bronze level coverage for the applicable household size involved, and are offered through the Exchange.  

• Specifies that the monthly penalty amount is equal to one-twelfth of the greater of either of the following (Sec. 42):

• The amount equal to the lesser of the following; or:

• The sum of the applicable dollar amounts for all applicable household members who failed to enroll in and maintain minimum essential coverage during the month; or

• 300 percent of the applicable dollar amount for the calendar year.

• An amount equal to 2.5 percent of the excess of the responsible individual’s applicable household income for the taxable year over the amount of gross income that would trigger the responsible individual’s requirement to file a state income tax return for the taxable year. 

• Specifies that except as provided in the above highlight, the applicable dollar amount for penalty is $695, or equal to one-half the applicable dollar amount for an individual less than 18 years old (Sec. 42)

• Specifies that for calendar years beginning after 2019, the applicable dollar amount will be increased by an amount equal to $695 multiplied by the cost-of-living adjustment as determined by the California Consumer Price Index, and if the amount increased is not a multiple of $50, the increase will be rounded down to the next multiple of $50 (Sec. 42).

• Specifies that the following types of individuals will be exempt from the requirements imposed by this act (Sec. 10):

• An individual who has in effect a certificate of exemption for hardship or religious conscience issued by the Exchange;

• An individual who is a member of a health care sharing ministry for that month;

• An individual who is incarcerated for that month, other than incarceration pending the disposition of charges;

• An individual who is not a citizen or national of the United States and is not lawfully present in the US for that month;

• An individual who is a member of a Native American tribe during that month; or

• An individual who is enrolled in limited or restricted scope coverage under the Medi-Cal program or another health care coverage program administered by the State Department of Health Care Services for that month. 

• Requires the Exchange to administer a financial assistance program to help low-income and middle-income Californians access affordable health care coverage through the Exchange (Sec. 11).

• Authorizes the program to provide financial assistance to California residents with household income at or below 600 percent of the federal poverty level, and may provide other appropriate subsidies designed to make health care coverage more accessible (Sec. 11).

• Defines “minimum essential coverage” the same as the Internal Revenue Code (Sec. 10).

• Defines “qualified health plan” as defined by the federal Affordable Care Act (Sec.11 ).

• Defines “Exchange” as the California Health Benefit Exchange, also known as Covered California (Sec. 10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires all California citizens purchase health insurance.

Highlights:

• Requires a California resident to be enrolled in and maintain minimum essential health care coverage for each month beginning on or after January 1, 2020 (Sec. 10).

• Specifies that the amount of the Individual Shared Responsibility Penalty will be equal to the lesser of the following (Sec. 42):

• The sum of the monthly penalty amounts (as determined in the next highlight); or 

• An amount equal to one-twelfth of the state average premium for qualified health plans that have bronze level coverage for the applicable household size involved, and are offered through the Exchange.  

• Specifies that the monthly penalty amount is equal to one-twelfth of the greater of either of the following (Sec. 42):

• The amount equal to the lesser of the following; or:

• The sum of the applicable dollar amounts for all applicable household members who failed to enroll in and maintain minimum essential coverage during the month; or

• 300 percent of the applicable dollar amount for the calendar year.

• An amount equal to 2.5 percent of the excess of the responsible individual’s applicable household income for the taxable year over the amount of gross income that would trigger the responsible individual’s requirement to file a state income tax return for the taxable year. 

• Specifies that except as provided in the above highlight, the applicable dollar amount for penalty is $695, or equal to one-half the applicable dollar amount for an individual less than 18 years old (Sec. 42)

• Specifies that for calendar years beginning after 2019, the applicable dollar amount will be increased by an amount equal to $695 multiplied by the cost-of-living adjustment as determined by the California Consumer Price Index, and if the amount increased is not a multiple of $50, the increase will be rounded down to the next multiple of $50 (Sec. 42).

• Specifies that the following types of individuals will be exempt from the requirements imposed by this act (Sec. 10):

• An individual who has in effect a certificate of exemption for hardship or religious conscience issued by the Exchange;

• An individual who is a member of a health care sharing ministry for that month;

• An individual who is incarcerated for that month, other than incarceration pending the disposition of charges;

• An individual who is not a citizen or national of the United States and is not lawfully present in the US for that month;

• An individual who is a member of a Native American tribe during that month; or

• An individual who is enrolled in limited or restricted scope coverage under the Medi-Cal program or another health care coverage program administered by the State Department of Health Care Services for that month. 

• Requires the Exchange to administer a financial assistance program to help low-income and middle-income Californians access affordable health care coverage through the Exchange (Sec. 11).

• Authorizes the program to provide financial assistance to California residents with household income at or below 600 percent of the federal poverty level, and may provide other appropriate subsidies designed to make health care coverage more accessible (Sec. 11).

• Defines “minimum essential coverage” the same as the Internal Revenue Code (Sec. 10).

• Defines “qualified health plan” as defined by the federal Affordable Care Act (Sec.11 ).

• Defines “Exchange” as the California Health Benefit Exchange, also known as Covered California (Sec. 10).

Full Bill Text