New California Healthcare Laws Go Into Effect January 1st, Tax If you Don’t Have Health Insurance.

Kaiser Permanente Medical Center Hospital in San Diego
The entrance to the newly constructed Kaiser Permanente San Diego Medical Center hospital is shown in San Diego, California , U.S., April 17, 2017. REUTERS/Mike Blake

As of January 1st, a slew of new laws and regulations will go into effect for Californians.

One, in particular, is raising eyebrows as it seemingly follows an Affordable Care Act (ACA) provision that was deemed unconstitutional by a federal appeals court two weeks ago.

On December 18th, 2019, By a 2-1 vote, the 5th Circuit Court of Appeals in New Orleans agreed with Texas and 17 other red states that the key part of the law is unconstitutional — the provision that requires all Americans to buy insurance or pay a penalty on their income tax.

In lieu of this ruling, California is imposing its own state individual mandate tax penalty that is being reinstated. Californians who choose not to buy qualified health insurance will face a penalty of either $695 per adult ($347.50 per child) or 2.5% of their annual income
California begins taxing people who refuse to buy health insurance

A family of four would pay at least $2,000. The projected $300 million to $400 million in tax proceeds will go to giving middle-income people discounts on their monthly health insurance premiums.

This, of course, is on top of the state providing health insurance for low-income immigrants ages 25 and younger living in the U.S. illegally. It’s expected to cost $98 million and cover about 100,000 people. California already provides health insurance for children living in the U.S. illegally.

For more information on the state mandate tax and health insurance check out Covered California’s website.