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Covered California Q&A

Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.

What's the Difference Between the 8% Rule and the 9.5% Rule?

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Question: Regarding premium costs, do you know the difference and the meaning of the ‘8% of income’ rule, and also how different than the ‘9.5% of income’ rule?

Answer: The premium threshold for an exemption from the individual mandate is 8% of income, while 9.5% of income is the “fair share” premium threshold for premium assistance.

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