California Health Insurance Marketplace Guide

To enroll in an ACA Marketplace/exchange plan in California, you can:

• Visit Covered California, California’s health insurance exchange (Marketplace). Using this online platform, you can compare plans, determine whether you’re eligible for financial assistance, and enroll in coverage. You can reach the Covered California call center at 1-800-300-1506, Monday to Friday between 8 a.m. and 6 p.m.
• Enroll in a plan through Covered California with the help of an insurance agent or certified enrollment counselor.²²
• Covered California has a “help on demand” program that allows you to submit your contact information and then receive a call from a certified enrollment assister who will help you sort out the details.

The Affordable Care Act (ACA) provides income-based premium subsidies that can reduce the amount you pay for your coverage each month. In California, these subsidies are available to applicants who meet the eligibility requirements and enroll in a health plan through Covered California.

In addition to federal subsidies, California is among the states where state-funded subsidies are available. For 2027 coverage, California is offering additional state-funded premium subsidies to applicants with household income up to 200% of the federal poverty level ($31,920 for an individual; $66,000 for a family of four).² The state subsidy limit was 165% of the poverty level in 2026,²³ so the program has been expanded for 2027.

During the open enrollment period for 2026 coverage, eight out of ten people who enrolled via Covered California were eligible for federal premium tax credits. These subsidies averaged about $579/month, and after the subsidies were applied, the average subsidy-eligible enrollee’s premium was about $165/month.²⁴

In 2026, more than 389,000 enrollees also qualified for the state-funded subsidies, which reduced their premiums by an average of $45/month (in addition to their federal subsidies).²⁵ With the income limit increase for 2027, Covered California expects 500,000 people to qualify for the state-funded subsidies.²

Although the average California state subsidy amount is $45/month in 2026, it varies by income:

• Under 150% of FPL: Average state-funded subsidy is $63/month
• 150%-165% of FPL: Average state-funded subsidy is $23/month

In 2027, the average subsidy amount is growing for those with income between 150% and 165% of FPL, and becoming newly available for those with income between 165% and 200% FPL:²⁶

• Under 150% of FPL: Average state-funded subsidy is $63/month
• 150%-165% of FPL: Average state-funded subsidy is $33/month (an increase)
• 165%-200% of FPL: Average state-funded subsidy is $36/month (newly available)

Those amounts are averages, and there’s variation from one enrollee to another depending on age and exact household income. And again, the state subsidy is in addition to federal premium subsidies.

If your household income isn’t more than 250% of the federal poverty level, you’ll also be eligible for federal cost-sharing reductions (CSR). These benefits, which are built into Silver-level plans for eligible applicants, reduce the deductible and other out-of-pocket expenses. About 43% of Covered California enrollees were receiving CSR benefits as of 2026.²⁴

In 2024 and 2025, California supplemented the federal CSR benefits with additional state-funded cost-sharing subsidies. Starting in 2026, this program was converted to a supplemental premium subsidy, to help offset some of the reduction in federal premium subsidies due to the expiration of federal subsidy enhancements.²⁷

When the federal subsidy enhancements expired at the end of 2025, California’s state subsidy program switched to a supplemental premium subsidy for applicants with household income up to 165% of the federal poverty level (as noted above, this is growing to 200% of FPL in 2027). This has helped keep coverage affordable for those enrollees, but Covered California noted that the state funding is only a small fraction of the federal funding that was lost when the federal subsidy enhancements expired.²⁸

Covered California and Medi-Cal (California Medicaid) use the same application, and the system will let you know whether you’re eligible for Medi-Cal or a private plan through Covered California – with subsidies if you qualify for them.

Source: CMS.gov ²⁴

California does not allow short-term health insurance policies to be sold, under the terms of legislation that the state enacted in 2018.²⁹

Twelve insurers are offering individual/family plans through Covered California for 2027, including one newcomer.²

• Anthem Blue Cross
• Blue Shield of California
• Balance by CCHP
• CalOptima Health (new for 2027)
• Health Net
• Inland Empire Health Plan
• Kaiser Permanente
• LA Care Health Plan
• Molina Healthcare
• Sharp Health Plan
• Valley Health Plan
• Western Health Advantage

Covered California had 12 insurers in 2025,³⁰ but Aetna exited the market at the end of 2025 (as was the case in all states where Aetna offered Marketplace coverage).

So there were 11 participating insurers in 2026, but that’s growing to 12 again in 2027 with the addition of CalOptima Health.

The following average rate changes have been proposed for 2027 by Covered California’s individual market insurers, amounting to an overall average rate increase of 9.9%, before subsidies were applied.²

Source: Covered California²

California’s 2027 weighted average rate increase for full-price plans is well below the national average, but still a significant increase for people who don’t receive premium subsidies. However, the majority of enrollees will be protected from the rising premiums by their federal subsidies and the state’s additional subsidies: About 60% of enrollees will see no increase in their premiums, and some will see a decrease. And about a quarter of Covered California enrollees will be eligible for $0 premium plans in 2027.²

If the cost of your current plan is increasing for the coming year, you may want to consider some of the other plans that are available via Covered California. You might find some that are less expensive and offer similar benefits.

Here’s a look at how average full-price (pre-subsidy) premiums have changed over the years in California’s individual/family market:

• 2015: Increase of 4.2%.³¹
• 2016: Increase of 4%.³²
• 2017: Increase of 13.2%.³³
• 2018: Increase of 16.6%.³⁴
• 2019: Increase of 8.7%.³⁵
• 2020: Increase of 0.9%.³⁶
• 2021: Increase of 0.6%.³⁷
• 2022: Increase of 1.8%.³⁸
• 2023: Increase of 5.6%.³⁹
• 2024: Increase of 9.6%.⁴⁰
• 2025: Increase of 7.7%.⁴¹
• 2026: Increase of 10.1%.⁴²

CMS reported that 1,927,371 people enrolled in 2026 plans through Covered California during open enrollment.²⁴

This was down about 52,000 from the year before, when Covered California’s enrollment had reached a record high. The decline in 2026 was due to the expiration of the federal subsidy enhancements at the end of 2025, which drove net premiums higher.

Here’s a summary of historical enrollment numbers for Covered California:

Source: 2014,⁴³ 2015,⁴⁴ 2016,⁴⁵ 2017,⁴⁶ 2018,⁴⁷ 2019,⁴⁸ 2020,⁴⁹ 2021,⁵⁰ 2022,⁵¹ 2023,⁵² 2024,⁵³ 2025⁵⁴ 2026²⁴

Covered California: This is California’s Marketplace/exchange. Residents can use Covered California to enroll in individual/family health plans and receive income-based subsidies, and also to enroll in Medi-Cal. You can contact Covered California at 800-300-1506.

California Department of Health Care Services: The agency that administers Medi-Cal and various other health care programs.

California Department of Managed Health Care (DMHC): Regulates the vast majority of California’s commercial (non-self-insured) health plans, and assists consumers and businesses with insurance-related questions and concerns.

California Department of Insurance: Regulates California’s insurance plans that aren’t regulated by the DMHC. If a complaint or concern is filed with the DMHC and it’s for a product that’s regulated by the Department of Insurance, it will be forwarded to the Department of Insurance.

California Health Insurance Counseling and Advocacy Program (HICAP): A service for California Medicare beneficiaries and their caregivers. HICAP provides information and assistance with questions related to Medicare eligibility, enrollment, and claims.