One of the concerns about the fate of Obamacare is how it can survive without the individual mandate requiring Americans to enroll in an adequate health plan.  Carriers demanded it as the price for their support, since a lack of a mandate would create considerable “adverse selection” and thus higher potential costs of coverage.  So now California (along with only New Jersey and Washington DC) will simply leap over the recent Federal decision to let things slide on the mandate and impose one of its own:

  1. Penalties will be the same as under the ACA with the uninsured owing either $695 per year or 2.5% of their household income, whichever is greater.
  2. Simultaneously the state will drastically increase the number of people eligible forACA subsidies which have been expanded to SIX times the federal poverty limit ($75,000 for an individual and $154,500 for a family).  The current limit is FOUR times.