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AB-2363 • 2026

Individual Shared Responsibility Penalty: exemption.

Individual Shared Responsibility Penalty: exemption.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Bains
Last action
2026-03-16
Official status
Referred to Com. on HEALTH.
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details on how to define household membership or address partial-year enrollment in Medi-Cal.

Exemption from Health Insurance Penalty for Medi-Cal Enrollees

This law stops people who were on Medi-Cal in 2024 or 2025 from having to pay a penalty if they did not have health insurance.

What This Bill Does

  • Adds an exemption so that people do not get fined for not having health insurance if someone in their family was on Medi-Cal during those years.

Who It Names or Affects

  • People living in California
  • Households where someone was enrolled in Medi-Cal in 2024 or 2025

Terms To Know

Minimum Essential Coverage Individual Mandate
A rule that says people must have health insurance.
Individual Shared Responsibility Penalty
A fine for not having the required health insurance.

Limits and Unknowns

  • Does not specify how to determine household membership.
  • It only applies to individuals who are California residents.

Bill History

  1. 2026-03-16 California Legislative Information

    Referred to Com. on HEALTH.

  2. 2026-02-20 California Legislative Information

    From printer. May be heard in committee March 22.

  3. 2026-02-19 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2363, as introduced, Bains.
Individual Shared Responsibility Penalty: exemption.
Existing law establishes the Minimum Essential Coverage Individual Mandate to require an individual who is a California resident to ensure that the individual, and any spouse or dependent of the individual, is enrolled in and maintains minimum essential health insurance coverage for each month beginning on and after January 1, 2020, except as specified. Existing law imposes an Individual Shared Responsibility Penalty for the failure to maintain minimum essential health insurance coverage, as determined and collected by the Franchise Tax Board in collaboration with the California Health Benefit Exchange, as specified. Existing law prohibits the imposition of this penalty on an individual for a month in which any of certain circumstances apply.
This bill would additionally prohibit the imposition of an Individual Shared
Responsibility Penalty for a month if the applicable household member, as defined, with respect to whom the penalty would otherwise be imposed was enrolled in Medi-Cal in 2024 or 2025.

Current Bill Text

Read the full stored bill text 
Download Bill PDF