#Health #Insurance #Subsidy in California for year 2020 understand via examples

Hi everyone, my name is Diana and I am an insurance agent here in California and today we are going to take a quick look at health plans available in year 2020 and the subsidy available in california as You may already know or if you don't know i'll say it again health insurance is going to be mandatory in, California Starting with year 2020 and if you don't have health insurance You will pay a penalty starting with next year on the other hand There are additional subsidies available through the state on top of federal subsidies already in place So I just got access to the subsidy calculator Available through covered California and we will look at a few examples now before I proceed I just wanted to let you know that it is for this is for Informational purposes only and it's based on preliminary rates Submitted to regulators. This is not the official voting system So before we look at the calculator, let's just take a look at the table and let me get that table I had it here prepared. There we go. And

This is a very helpful tool. I referenced this many many times while working with my clients and basically Using this table. You can easily look at the household Size so that's the household size right here and your income so let's say your family of two and you Can look at the income and see what you qualify for. So basically if there are if you are family of two living in California and your income is This much then you may qualify for Subsidies and we'll go over this really quick So yeah It's that this table is available on my website and I'll reference a link under this video again We will come back to this table again. Now. Let's just look at an example and for this I will need to open the calculator So the calculator can You just one moment So here's the calculator

Calculator and before I proceed with the example. I just wanted to mention one thing that receiving state subsidy depends on the difference between two numbers maximum contribution and benchmark Premium and again, we'll go over in detail in a few minutes maximum contribution is the basically the amount that you or your household is expected to contribute towards the premium and As your income goes up you are expected to pay more for your health insurance The benchmark premium is the price of the second lowest cost silver plan for for you. Right the Basically, the benchmark premium will vary based on your zip code and age and I don't want to make it boring and complicated my my job is really to simplify things, but I we what really wanted to Say that before we look at the example so again, there are many variables when calculating the subsidies and Let's just start with the example ready. Let's say that we have a couple

Living in San Francisco say zip code nine four one two one That's the one I remember it and let's say that the income for this couple is $100,000 100k per year. So let's just say that it's a household of two So both of them are thirty years old for example, right? So let's just see the results Again, we are looking at next year 2020 Okay, so Here, it's like it could be a little confusing. But again, I'll try to make it easy. So as you can see This couple doesn't qualify for any subsidies Basically zero zero, right? And they will be paying the full premium depending on the plan So if they decide to go with the lowest premium plan, which is Kaiser They would be paying 704 dollars every month right now. Let's just go back. Let's go back and let's say that This couple is making six to eight thousand a year

So in this case We basically look remember I was talking about the benchmark and all those terms So we and and I mentioned that the silver plan so You know this this couple basically Would have a maximum contribution of four hundred and fifty six dollars a month, right And they a benchmark plan would be nine hundred and eighteen dollars So that was that's exactly what I was talking about earlier So here's the trick because their benchmark plan costs more than they a maximum contribution They will be eligible for state credit in the amount of four hundred and sixty two dollars and They have federal credit would be zero. So remember we looked at the table and let me open that table again and So here we are two people sixty eight thousand They fall right here. So they fall between 400 and 600 percent of

FPL federal poverty level so they don't qualify for the federal credit But they qualify for the state credit, right? So it's like it's it's right here So if you fall right in this income category, then you would get subsidies from the state Let's go back here and Let's just Twist this a little bit. Okay So let's say this is a couple living in San Francisco making it hundred thousand dollars going back to my Previous income but let's just say that this couple is 63 years old But we want to show you on something here. So remember the 30-year old couple had no subsidy if They a bit older if they're 63. Let's see what happens Same typical guy same zip code saying income which is like a different age so in this case as you can see The maximum contribution is

1221 for the second-lowest Silver and their benchmark plan would have been two thousand three hundred and eighty eight. So if they were to buy this plan, Directly from Kaiser. This is how much they would have paid right if they get it through covered, California they pay basically less 1221 so Because the benchmark plan cost more than their maximum contribution they would be basically eligible for a state credit in the amount of 1167 which basically reduces the the the PO premium, so I really hope that this is pretty clear I know it's a little bit confusing with all this terms and state credit and federal credit But I really want to try to make it easy for Everyone, but you know if you have a specific question, obviously Feel free to reach out to me directly and I'll help I will have reference Under the description of this video and how to reach me. Um, so basically

And I'm looking at that at the silver plan, but you can you know other variable other plans are available as well so basically what I wanted to Point out here as you can see the subsidies could be zero or it could be quite generous As we saw in the example of the 63 three-year-old couple living in San Francisco. I Don't want to talk. I don't have time and I will not be able to cover this and The plan designs in this video. I have a new video coming up very soon Dedicated specifically to this topic, so please like share and subscribe to my channel I really love helping people and I'm creating these educational videos to help my clients and others understand how insurance works and If you can spare just a second of your time and share this information, I will really appreciate it Thank you, and I will see you in the next video You you