Speak with a Covered California certified agent! Call (888) 413-3164 or Shop Online Now

Shop and Compare

California Health Insurance Plans and Rates

It's easy. Just enter your zip code.

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.

Can I Opt Out of the Subsidy?

By on | No Comments

Question: Can I opt out of the subsidy even if I qualify now or later? If I did, would I still have to prove income, report changes, etc. Does covered california provide such an option?

Answer: There are a number of ways to apply through Covered California and opt out of premium assistance. (1) The very first question on the Covered California online application is: "Do you want to see if you qualify for free or low-cost Medi-Cal or tax credits with Covered CA?". If you respond "No" to this question, your income will not be considered and you will be ineligible for premium assistance. (2) If you respond "Yes" to this question, you can receive premium assistance if your income drops below the 400% FPL threshold. Most people should take this option, because they retain the option to receive premium assistance should your income drop. If you don't want to deal with having to repay premium assistance, report income changes, provide proof of income etc., here's what I recommend. When applying you can select and Annual Premium Assistance as opposed to the default, "Monthly Premium Assistance". The annual premium assistance option will credit any premium assistance due for the year on your tax return. That way you are not leaving any potential benefits on the table while minimizing income fluctuation reporting hassles.

Leave a comment

Do You Have California Health Insurance Questions?

Ask An Expert

View Previous Questions
Call Us at (888) 413-3164

© 2022 California Health Benefit Advisers, LLC
Home / About / Start Shopping / Ask a Question

“Covered California,” “California Health Benefit Exchange”, and the Covered California Logo are registered trademarks or service marks of Covered California, in the United States. This web site is owned and maintained by California Health Benefit Advisers, LLC, which is solely responsible for its content.