CALIFORNIA Penalties from uninsured stockpiled
And so far, most Californians paying the tax penalty for not having insurance are low- and middle-income earners, according to state tax officials — just the people the money was intended to help.
“It’s concerning,” said
State finance officials have estimated that the revenue collected via the penalty in its first three years, from 2020 through 2022, will total about
case Californians need help paying for health insurance in the future.
Newsom and Democratic lawmakers adopted the state health insurance requirement in 2019, nearly two years after the Republican-controlled
Newsom argued, however, that a so-called individual mandate would help
The penalty revenue was supposed to help fund state-based subsidies for low- and middle-income Californians who purchase coverage through Covered California that Newsom and state lawmakers approved the same year. The state subsidies would supplement the existing federal financial assistance offered under Obamacare.
But COVID-19 changed the equation.
To prevent people from losing insurance during the pandemic, the Biden administration and the Democratic-controlled
The Newsom administration argued the additional federal assistance was enough to help residents afford coverage, and
But the state continued levying the tax penalty, and the Newsom administration is stockpiling some of the money given fiscal projections that show
“The recent downturn in state tax revenues highlights the importance of having those funds set aside,” Newsom spokesperson
In 2021, Newsom and state legislators transferred
For the 2020 tax year, the first year the mandate was in place,


Editorial Stop hoarding state health insurance fines
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