It’s officially 2020 Open Enrollment Period for Health Insurance! If you would like to enroll into health insurance for the first time, or if you would like to change plans, you must do so between October 15, 2019 – January 31, 2020. Individuals who are 65 years of age and over can make adjustments to their Medicare plan during the Medicare Open Enrollment Period, which is from October 15 – December 7.
Under the current U.S. healthcare system, this is the only time you will be able to make any changes to your health plan. After the Open Enrollment Period is over, even if you’re unsatisfied with your plan, you won’t be able to change it. You would have to wait until this same time of next year. With that being said, if any of the following three situations apply to you, this is your time to take action. You don’t want to miss this short three month enrollment period!
If you are currently not insured or enrolled in health insurance, you would have to enroll in health insurance to avoid paying the fine. Complete your application by December 15 for your health insurance to become effective on January 1, 2020.
If you are looking to change plans, whether it’s because you are unsatisfied with your current plan’s benefits and costs or have new medical needs such as expecting to have children in 2020, or planning to go through a surgery, etc., this Open Enrollment Period is the time for you to reevaluate your plan.
If you are an immigrant currently in the process of becoming a citizen (OPT, work visa, waiting for green card approval, etc), or are applying for a Social Security Number (SSN), this Open Enrollment Period is the only chance you have to purchase health insurance in the United States!
Many changes have been made in the 2020 health insurance market. Take note of these five key points!
1. The fine is back!
The bill that was passed on January 1, 2020 restored the mandatory health insurance requirement. Individuals are required to have health insurance, otherwise, they would have to pay the fine when reporting state taxes. The fine is 2.5% of the annual household income, or $695/year for each adult, and $347.50/year for each child 18 years and younger, whichever is higher.
2. The smallest premium increase in history
The average increase in California in 2020 was 0.8%, which is the lowest premium increase since the implementation of Obamacare in 2014. Some premiums for specific plans will not increase.
3. The Federal Poverty Level (FPL)
U.S. citizens or permanent residents with green cards can apply for health insurance with federal subsidies. Premiums and subsidies are dependent on the household size, annual household income, and place of residence. In 2020, the government increased the premium subsidies which means the federal poverty line was lowered, which means that many middle-income households can receive more premium subsidies.
The federal poverty level has increased from 400% to 600%, so a single person household with an annual income of $74,943, a family of two with an annual household income of $101,461, and a family of four with an annual household income of $154,500, with the subsidies included, there are several plans that result in a premium of $1/month.
4. The return of Anthem Blue Cross
In 2020, the 11 insurance companies that originally served California will continue to provide services throughout the state, and Anthem Blue Cross is making its return and expanding its services back to Southern California. It’s estimated that in 2020, 99.6% of residents will have at least two or more insurance companies to choose from, and 87% of the population will can at least three or more insurance companies to choose from.
5. Does "public charge" affect naturalization proceedings? Does having Medi-Cal affect my "public charge" and immigration status?
The U.S. Citizenship and Immigration Services (USCIS) implemented a rule in August, taking effect on October 15, 2019.
“Under Section 212(a)(4) of the Immigration and Nationality Act (INA), an individual seeking admission to the United States or seeking to adjust status to that of an individual lawfully admitted for permanent residence (Green Card) is inadmissible if the individual, “at the time of application for admission or adjustment of status, is likely at any time to become a public charge.” Public charge does not apply in naturalization proceedings. If an individual is inadmissible, admission to the United States or adjustment of status is not granted.”
One’s financial status (including having Medi-Cal and using food stamps) is one of many relevant factors that are considered when making a public charge determination. However, applying for subsidized health insurance plans from Covered California does not count as “public charge” so individuals can still purchase health insurance with subsidies. The following are some examples:
(1) Parents are green card status, but their child is a citizen since they were born in the U.S. Based on their household income, in the past, children were able to use Medi-Cal without having to worry. However, since the new regulation came into effect, the parents worried that their children using Medi-Cal would be considering using government benefits which would end up affecting the parents’ naturalization process to becoming citizens. These newly immigrated parents ended up choosing to purchase health insurance for their children rather than continuing to use Medi-Cal. Purchasing this health insurance for their children was not a bad idea since the premium was not too expensive and they would no longer have to worry about whether or not their doctors and hospitals accepted Medi-Cal.
(2) Newly immigrated husband and wife just received their green card through investments, however they have not generated much income. They took their immigration lawyer’s advice and decided to not use Medi-Cal, but instead purchase health insurance from Covered California.
If you have any questions or concerns regarding this information, it’s best to consult an immigration lawyer and/or accountants. During Open Enrollment Period, it’s easy to purchase health insurance without having to worry about using government benefits and becoming “public charge” status.
To better understand 2020 health insurance and benefits, and to save more on premiums, KCAL will be hosting multiple health insurance seminars starting in Octobers. Get all your health insurance questions answered!