California health insurance subsidies now apply to more middle-income families

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As the open enrollment period begins, more state residents will qualify for financial assistance.

Open enrollment began as of yesterday, and a higher number of middle-income families will discover that they qualify for California health insurance subsidies for next year’s coverage.

The open enrollment period for the Covered California exchange is October 15 to January 31.

Families who have enrolled for their health plans by December 15, regardless of whether they qualify for California health insurance subsidies, will have coverage effective January 1, 2020. That said, their coverage will begin on February 1 if they enroll at any point between December 16 and January 31.

An additional 235,000 middle-income California residents are expected to qualify for subsidies to help make health plans more affordable. The reason for this substantial increase in qualification rates is that the state is implementing its own subsidies for the first time in 2020. Until 2019, individuals using the insurance exchange to shop for their health plans only had the potential to qualify for federal assistance. Now state assistance is also available.

The new California health insurance subsidies were mainly created to help middle-income families.

The federal subsidies were available for individuals making $17,000 to $50,000 per year. This represents households earning about 138 percent to 400 percent of the federal poverty level, according to a San Francisco Chronicle report.

That said, the new state-based subsidies will make assistance available to people earning $50,000 to $75,000, at about 400 percent to 600 percent of the federal poverty level. That said, it’s important to point out that not all subsidies are measured and assigned equally. The state has implemented a scale in which those with higher income levels will obtain a smaller sized subsidy.

There are approximately one million people in California who receive federal assistance to make their health plans more affordable. That said, as of 2020’s coverage year, around 663,000 meet the eligibility requirements to receive a state subsidy in addition to what they obtain from federal funds. That said, the specific amount they will obtain from the California health insurance subsidies depends on the cost of coverage in an individual’s region, as well as his or her age at the time of enrollment.

Source:-liveinsurancenews