AB 78 establishes penalty for not having health insurance

Sacramento, Ca.


Assemblyman James Gallagher (R-Yuba City) today issued the following statement in response to AB 78, a Budget Trailer Bill that establishes a penalty for those not having health insurance in California:

“I am opposed to the proposed tax penalty in the budget for anyone not purchasing health insurance. The idea that we should mandate under threat of a fine or penalty that you purchase health insurance, or any product/service for that matter, runs counter to our American values and any concept of personal freedom. And the idea that it is “necessary” to bring down the costs of healthcare and premiums is just laughable at this point.

“Since we embarked on this failed Obamacare experiment has anyone seen their costs go down? Does anyone charge less? Have your premiums gone anywhere but up? So why are we doubling down on this in California. Same old story: Government gets bigger and more intrusive and you pay more.”

The penalty imposed for violating the rule to carry health coverage equals the greater of (1) $695 per adult plus $347.50 per child, up to a maximum of $2,085 or (2) 2.5 percent of a household’s modified adjusted gross income above the filing threshold, up to a maximum of the average cost of a bronze plan on the California exchange.

For more information on Assemblyman Gallagher, and to track legislation visit