A tax penalty intended to assist Californians without health insurance, known as the individual mandate, will be enacted four years after Gov. GavinNewsom approved the measure in 2019.
Those who have insurance through Covered California may experience lower healthcare costs, which will include striking some patients’ hospital deductibles up to $5,400. Insurees could see their copay for primary care visits drop and cost decreases for generic drugs. Out-of-pocket spending will be maxed at $6,100, a decrease from the previous $7,500 cap.
Earlier this year, Senate Democrats pressed Newsom to deliver on his Covered California promise, with members proposing to use the funds to strike deductibles and copays for around 900,000 Covered California enrollees next year in their April budget. In June, Newsom agreed to spend some of the funds on subsidies. The Covered California board members approved the new plan last week to lower healthcare costs starting next year.
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