Covered California 2027: What’s Changing With Rates, Subsidies and Open Enrollment
Updated: 3 hours ago
If you have Covered California — or you’re thinking about enrolling for 2027 — this is an important year to review your options carefully.
Covered California has announced new plans and rates for 2027. California is expanding state financial assistance for some households, insurance company options are changing in certain parts of the state, and federal tax-credit rules make accurate income estimates especially important.
One of the biggest headlines is a preliminary statewide average rate increase of 9.9% for 2027.[1]
But that does not mean your Covered California payment will automatically increase by 9.9%.
Your actual monthly premium depends on factors such as where you live, your age, household size, estimated income, the health plan you select and the financial assistance you qualify for.
Covered California says many members may be able to reduce the impact of rate increases by comparing plans and switching when a better-value option is available.[1]
So before you automatically renew your current coverage, here’s what Californians should know about Covered California in 2027.
Are Covered California Rates Going Up in 2027?
Yes.
Covered California announced a preliminary weighted average rate increase of 9.9% statewide for 2027.[1]
However, that statewide number is only an average.
Rate changes differ by insurance carrier and by California rating region.
2027 Covered California Average Rate Changes by Area
California Area | Average 2027 Rate Change |
Statewide | 9.9% |
Sacramento, Placer, El Dorado & Yolo | 9.0% |
San Francisco | 9.7% |
Santa Clara County | 11.3% |
Fresno, Kings & Madera | 11.8% |
Kern County | 11.4% |
Northeast Los Angeles County | 8.5% |
Southwest Los Angeles County | 9.3% |
San Bernardino & Riverside | 9.8% |
Orange County | 10.4% |
San Diego County | 13.1% |
Source: Covered California, 2027 Individual Market Rate Changes by Rating Region.[1]
These figures represent average full-price rate changes in each rating region.
They do not necessarily represent the increase an individual Covered California member will pay after financial assistance.
A 9.9% Rate Increase Does Not Necessarily Mean Your Bill Goes Up 9.9%
This distinction is extremely important.
There is a difference between:
The full insurance premium
and
The amount you personally pay after financial assistance.
When insurance premiums change, the amount of financial assistance available to an eligible household may also change.
Covered California estimates that despite the announced rate increase, 60% of enrollees could see no increase in their monthly premium, while approximately 26% could remain eligible for a $0 monthly premium without changing plans.[1]
Some consumers may also be able to lower their costs by changing plans.
That is why you should not assume that your 2026 plan will automatically be your best option in 2027.
The least-expensive plan this year may not be the least-expensive plan next year.
California Is Expanding Financial Help for 2027
There is some good news for lower-income Californians.
California expanded its state premium subsidy program for 2027.
Californians with household income up to 200% of the Federal Poverty Level may qualify for California financial assistance toward their monthly Covered California premium.[1]
For 2027 coverage, 200% FPL is approximately:
$31,920 per year for one person
and
$66,000 per year for a household of four.
Covered California projects that more than 500,000 Californians could receive state premium subsidies in 2027.[1]
However, income alone does not determine your final eligibility.
Household size, tax filing status, access to employer-sponsored insurance and other factors may also affect whether you qualify and how much financial assistance you receive.
Learn More About 2027 Income Limits
For a detailed explanation of the income levels, Medi-Cal thresholds, Enhanced Silver plans and subsidy eligibility, see our 2027 Covered California Income Requirements guide.
What Happened to the Enhanced Federal Premium Tax Credits?
The enhanced federal Premium Tax Credits that had provided additional health insurance assistance beginning in 2021 expired at the end of 2025.
Financial help through Covered California still exists, but some consumers may now receive less assistance than they did while those enhanced credits were available.
California has expanded its own state assistance for qualifying lower-income residents, but the state program does not replace all of the enhanced federal assistance that previously existed.[1]
This makes comparing plans especially important for households that experienced a significant premium increase.
Don't assume that because your current plan has become expensive, every Covered California option will cost the same amount.
When Is Covered California Open Enrollment for 2027?
Covered California Open Enrollment for 2027 coverage runs from:
November 1, 2026 through January 31, 2027.[2]
If you want coverage beginning January 1, 2027, Covered California says you should complete enrollment by December 31, 2026.[2]
People who enroll during January generally have coverage beginning February 1.[2]
Existing Covered California members can start earlier.
Covered California says current members can begin renewing or switching their plans in October.[3]
That means October is an excellent time to:
Review your estimated 2027 household income
Check your new premium
Compare insurance companies
Check your doctors and hospitals
Review your prescriptions
Compare deductibles and copays
Determine whether another plan could provide better value
Should I Automatically Renew My Covered California Plan?
Automatic renewal can be convenient.
But convenient does not necessarily mean cheapest or best.
Covered California specifically recommends reviewing your household information, expected income, doctors, hospitals, prescriptions and available plan options during renewal.[3]
Health insurance changes from year to year.
Your current insurance company might raise its premium.
A competing company might lower its relative price.
Your doctor could leave a network.
Your prescriptions could be covered differently.
Your financial assistance might change.
Your household income may also be different.
That means simply keeping the same plan without comparing your options could result in paying more than necessary.
However, choosing the lowest monthly premium without looking at benefits can also be a costly mistake.
Your goal should not necessarily be:
“Which plan has the cheapest monthly premium?”
A better question is:
“Which plan gives me the best overall value based on my premium, doctors, prescriptions, deductible and expected medical needs?”
Molina Is Leaving Some Covered California Regions in 2027
Consumers in parts of Southern California should pay particular attention during renewal.
Covered California announced that Molina Healthcare will no longer offer marketplace plans in northeast Los Angeles County or Orange County in 2027.[1][2]
Meanwhile, CalOptima Health is entering the Covered California marketplace in Orange County for 2027.[1]
If you currently have a Molina Covered California plan in an affected area, review your replacement options carefully.
Do not compare plans based solely on premium.
Check whether your:
Primary care doctor is in network
Specialists are in network
Preferred hospital is in network
Prescription medications are covered
before selecting your replacement plan.
Your 2027 Income Estimate Is More Important Than Ever
Covered California financial assistance is generally based partly on the household income you expect to receive during the coverage year.
That means your application should contain your best reasonable estimate of your 2027 household income.
This is particularly important for:
Self-employed Californians
Freelancers
Independent contractors
Commission-based workers
Gig workers
People whose hours change frequently
People expecting a major income change in 2027
The IRS explains that the amount of Premium Tax Credit you ultimately qualify for is reconciled against the advance tax credits paid toward your insurance during the year.[4]
Beginning with tax years after 2025, there is no longer a repayment cap for excess Advance Premium Tax Credits. If the advance credit paid on your behalf is greater than the Premium Tax Credit you were actually entitled to receive, the full excess amount may have to be repaid through your federal tax return.[4]
That makes accurate income reporting significantly more important.
If your income or household circumstances change during 2027, update your Covered California application.
The IRS specifically advises Marketplace consumers that changes in income, household size, marriage, divorce and eligibility for other health coverage can change the Premium Tax Credit amount.[4]
Don't Compare Covered California Plans by Premium Alone
Seeing a $0 or very-low-premium plan can understandably get your attention.
And sometimes that plan really is the right choice.
But your monthly premium is only one part of what health insurance costs you.
You should also compare:
Deductibles
Primary care copays
Specialist copays
Prescription costs
Emergency room costs
Maximum out-of-pocket limits
Doctor networks
Hospital networks
Prescription formularies
For example, Covered California's standardized 2027 benefits show substantial differences between Bronze, standard Silver, Enhanced Silver, Gold and Platinum coverage.
Someone who visits a doctor once or twice per year may reasonably choose a different plan from someone who regularly sees specialists, takes several medications or expects significant medical treatment.
Compare 2027 Deductibles and Copays
See our detailed 2027 Covered California Deductibles, Copays and Benefits comparison before choosing your plan.
Could You Still Get a $0 Covered California Plan in 2027?
Possibly.
Covered California estimates that nearly 200,000 Californians could choose between two Silver-tier options with a $0 monthly premium in 2027.
It also estimates that approximately 26% of existing enrollees could remain eligible for a $0 monthly premium without changing plans.[1]
However, there is no universal “$0 Covered California plan.”
Your actual premium depends on your individual household circumstances.
Factors can include:
Your income
Household size
Age
ZIP code
Available insurance companies
Benchmark plan prices
Eligibility for financial assistance
That explains why two people with similar incomes may receive very different Covered California quotes.
The best way to determine your actual cost is to review your complete household information and compare the plans available in your ZIP code.
What Should You Check Before Choosing a 2027 Plan?
Before enrolling or renewing, ask yourself:
1. What will my monthly premium actually be after financial assistance?
Don't compare only the insurance company's full premium.
2. Are my doctors and hospitals in network?
Networks can vary between insurance companies and even between plans from the same company.
3. Are my medications covered?
Check the plan's prescription formulary and drug tier.
4. What is my deductible?
A lower premium can sometimes come with higher costs when you actually receive medical care.
5. What is my maximum out-of-pocket cost?
This can be especially important if you expect significant medical treatment.
6. Has my income changed?
Your estimated 2027 household income may change the financial assistance you receive.
7. Is there a better plan available this year?
Don't assume your current plan remains your best option.
The Most Important Question for 2027 Isn't “Are Rates Going Up?”
For most Californians, a much more useful question is:
“What will my health insurance actually cost after financial help, and is there a better option available to me?”
The statewide average premium may increase, but averages don't tell you what your household will actually pay.
Your ZIP code, age, household income, family size, insurance company, plan level, financial assistance and health care needs all matter.
And because prices and plans change from year to year, a plan that made sense in 2026 may not be the best option in 2027.
Get Free Help Comparing Your 2027 Covered California Options
Trying to compare premiums, subsidies, insurance companies, deductibles, doctors, hospitals and prescriptions at the same time can become confusing quickly.
You don't have to figure everything out by yourself.
A Covered California Certified Agent can help you:
Review your Covered California eligibility
Estimate available financial assistance
Compare 2027 health plans
Review monthly premiums
Compare deductibles and copays
Check doctor and hospital networks
Review prescription coverage
Complete your Covered California application or renewal
Our Covered California enrollment assistance is available at no additional cost to you.
Whether you're applying for Covered California for the first time, renewing your existing plan or considering switching insurance companies, we can help you compare your available options.
Get free Covered California enrollment help and compare your 2027 options before choosing your plan.
Sources
Covered California Certified Agent is an independent certified insurance agency and is not affiliated with CoveredCA.com or the State of California. Information on this page is provided for general educational purposes and should not be considered legal or tax advice. Eligibility, premiums, benefits and financial assistance depend on the complete application and may change if federal or state rules change.
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