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California Residents with Qualifying Health Insurance and New Penalty Estimator

Effective January 1, 2020, a new state law requires California residents to maintain qualifying health insurance throughout the year. This requirement applies to each resident, their spouse or domestic partner, and their dependents.

To reach uninsured individuals, Covered California sent letters to approximately 2.1 million households beginning January 2, 2020. This letter informed individuals about the new state Minimum Essential Coverage Individual Mandate and share that they can go to Covered California to:

  • shop for qualifying health insurance;
  • get information about financial help to lower the cost of qualifying health insurance; and
  • get information about exemptions and the California Individual Shared Responsibility Penalty for failure to have qualifying health insurance coverage or an exemption.

Individuals who fail to maintain qualifying health insurance will owe a penalty unless they qualify for an exemption. Covered California and the Franchise Tax Board (FTB) each administer exemptions for qualifying individuals.

New Penalty Estimator

FTB has developed a new Individual Shared Responsibility Penalty Estimator to help individuals estimate their penalty if they do not have qualifying health insurance coverage or an exemption. The calculator is available at

For more information about this article, please contact our tax professionals at or toll free at 844.4WINDES (844.494.6337).
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