Will My Covered California Premium Go Up in 2027? What You Need to Know
Updated: 7 days ago
With Open Enrollment right around the corner on November 1, many residents are asking: Will my Covered California health insurance premium go up in 2027?
While health insurers are raising rates by a weighted average of 9.9% in 2027, California has taken major steps to expand state financial assistance to shield policyholders from the full rate hike. Here is what you need to know to keep your monthly costs as low as possible.
Why Are Rates Changing in 2027?
According to the official Covered California 2027 Rates Announcement, the premium increases stem from two primary factors:
Rising Healthcare Costs: Higher pharmacy expenditures and medical care prices account for roughly 8 percentage points of the total increase.
Federal Subsidy Expirations: The lapse of enhanced federal tax credits has returned the Federal Poverty Level (FPL) subsidy cap to 400% ($63,840 for individuals; $132,000 for a family of four).
Despite these headwinds, California's 9.9% average hike remains significantly lower than the preliminary national median rate increase of 14%.
California’s $300 Million State Subsidy Expansion
To counteract cuts at the federal level, Governor Gavin Newsom and the California Legislature appropriated $300 million into the Health Care Affordability Reserve Fund for 2027. Reporting from SFGate on Covered California Funding highlights that this expanded state funding will benefit over 500,000 Californians:
Lower-Income Relief: Individuals earning up to 200% of the FPL ($31,920 for individuals; $66,000 for a family of four) qualify for dedicated state-funded financial help.
Zero-Dollar Premiums: Nearly 200,000 enrollees will have access to two Silver-tier plans with a $0 monthly premium.
Rate Increases Vary Widely by Region
Because pricing differs significantly across California's 19 rating regions, a plan’s cost depends heavily on location. A regional breakdown by California Today Regional Rate Analysis details key regional averages for 2027:
Imperial, Inyo, & Mono Counties: 14.9% average increase
San Diego County: 13.1% average increase
San Francisco: 9.7% average increase
Los Angeles County: 8.5% to 9.3% average increase
Marin, Napa, Solano, & Sonoma: 8.0% average increase
Protect Your Wallet with a Certified Agent
Because rate changes depend on local carrier competition and your specific household income, automatically renewing your current plan could lead to unnecessary out-of-pocket costs. Shopping and switching to a different carrier in your area can often eliminate the price hike entirely.
If you want to maximize your state subsidies or review your local 2027 options, contact us today for a free, personalized rate review with a certified agent.
Find the Right 2027 Plan for You
Get help comparing your doctors, prescriptions, and plan costs with a Covered California Certified Insurance Agent.
Covered California Certified Agent is an independent certified insurance agency, not the official Covered California marketplace. We are not affiliated with CoveredCA.com or the State of California.
Related reading: 2027 Covered California income limits and subsidies
Comments