If an individual's annual income changes during the year, what should they do?

Reporting changes to Covered California is crucial when an individual's annual income changes during the year. This is because income directly impacts eligibility for financial assistance programs, including premium tax credits and cost-sharing reductions. If an individual does not report a change in income, they risk receiving incorrect benefits, which can either lead to owing money at tax time or missing out on needed financial assistance.

Covered California uses the reported income information to adjust any subsidies and ensure that the individual is enrolled in a plan that best suits their current financial situation. Timely reporting allows individuals to optimize their coverage and maintain compliance with health insurance regulations. Ensuring that income changes are communicated as they occur keeps coverage accurate and maximizes the benefits available based on the individual's up-to-date circumstances.