California Health Insurance Guide

Health Insurance Overview in California

California operates Covered California, one of the most successful state-based health insurance marketplaces in the nation. California expanded Medi-Cal (Medicaid) and had extended it to income-eligible adults regardless of immigration status, though new enrollment of undocumented adults has since been frozen. California also funds its own premium subsidies on top of federal tax credits for lower-income enrollees.

Average Health Insurance Costs in California

Marketplace Enrollment in California

California residents can enroll in individual and family health insurance plans through Covered California (State-Based). Open enrollment runs November 1 – January 31 (Covered California).

Average Premiums by City in California

Medicaid in California

Medi-Cal (California Medicaid) covers adults with incomes up to 138% of the federal poverty level. Undocumented adults who are already enrolled can keep coverage for now, but new enrollment for that group has been closed. California has expanded coverage significantly beyond federal requirements.

Children's Health Insurance (CHIP) in California

Medi-Cal covers children up to 266% of the federal poverty level. Children under 19 may also be eligible regardless of immigration status.

What Makes California Unique

California was one of the only states to offer full-scope Medicaid to income-eligible adults regardless of immigration status; new enrollment for undocumented adults is now frozen, while existing enrollees can keep coverage for now. California also funds its own marketplace premium subsidy, which for 2026 targets households up to 165% of the federal poverty level and is set to expand to 200% for 2027.

ACA Subsidies: What California Residents Should Know

The enhanced subsidies first enacted in the American Rescue Plan expired at the end of 2025. For 2026, premium tax credits follow the original ACA rules: there is no credit above 400% (the “subsidy cliff”), and enrollees are expected to pay up to 9.96% of income toward the benchmark Silver plan. House in January 2026 but has not become law, so 2027 plans are being priced and subsidized under the same rules unless Congress acts.

California’s State Subsidy After the Federal Enhancement Ended

When the enhanced federal credits expired after 2025, California redirected its own money. For 2026, Covered California replaced its prior state cost-sharing program with a state-funded premium subsidy for households up to 165% FPL, and the state expanded that help to 200% FPL for 2027. Earlier state help for middle-income households above 400% FPL is not available — above 400% FPL, Californians now pay full price.

• 2026 premiums rose about 10.1% on average before subsidies, well below the national increase; insurers proposed about 9.9% (weighted) for 2027.
• 12 insurers participate for 2027, up from 11.
• Open enrollment for 2027 runs November 1, 2026 through January 31, 2027 — two weeks longer than HealthCare.gov states.

California’s Individual Mandate Penalty

California is one of the states that kept an individual mandate after the federal penalty went to $0. Non-exempt residents who go without qualifying coverage pay a penalty on their California tax return. Losing job-based coverage is a qualifying event for a special enrollment period on Covered California — use it rather than waiting for open enrollment, both for the coverage and to avoid the penalty months.

Tips for Choosing Health Insurance in California

California residents should enroll through Covered California (not HealthCare.gov) to access state subsidies. California's extended open enrollment (through January 31) and special enrollment periods are more generous than the federal marketplace. Low-income residents should apply for Medi-Cal, which provides comprehensive coverage with minimal cost-sharing.

• Enroll during open enrollment (November 1 – January 31 (Covered California)) — missing the deadline means waiting until the next open enrollment unless you have a qualifying life event.

Frequently Asked Questions

Does California still give extra health insurance subsidies in 2026?

Yes, but differently. For 2026 California provides a state-funded premium subsidy for households up to 165% of the federal poverty level, expanding to 200% for 2027. State help for households above 400% of the poverty level is not available.

Can undocumented immigrants still get Medi-Cal?

New enrollment for undocumented adults has been frozen. Those already enrolled can keep their coverage for now. Children may still qualify regardless of immigration status.

When is open enrollment for Covered California for 2027?

November 1, 2026 through January 31, 2027.

The information on this page is provided for general informational purposes only and reflects estimated industry averages and program eligibility rules as of 2026. Health insurance premiums, Medicaid eligibility thresholds, marketplace options, and program rules change annually. Always verify current eligibility and enrollment options at the official Covered California (State-Based) or by contacting a certified navigator or broker. Premium figures shown are approximations before subsidies — actual net premiums depend on individual income, household size, and plan selection.