Covered California is putting $300 million into its State Subsidy Program for 2027, up from $190 million in 2026, the exchange said in its Oct. 30 open enrollment announcement. Enrollment runs from Nov. 1 through Jan. 31, 2027, but the agency says people must select a plan by Dec. 31 to be covered for all of 2027.
The added state money lowers monthly premiums for Californians with incomes up to 200% of the federal poverty level in 2027. The exchange puts that line at $31,920 for one person and $66,000 for a family of four, and its poverty-level chart lists $43,280 for two people and $54,640 for three. Gov. Gavin Newsom and the Legislature made the increase.
That leaves a simple question for anyone who buys their own coverage in California: where does the household’s income fall against that line, and has the plan for next year been picked? Households above that line fall outside the state program.
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How many people does the state money reach?
Covered California projects that more than 500,000 enrollees, about 30% of the total, will receive a state subsidy in 2027. More than 330,000 of them will pay less each month because of the larger investment, the agency says, and nearly 200,000 can choose from two Silver plans with a $0 premium.
The exchange also says about 200,000 people who were not eligible for financial help in 2026 will qualify for 2027, and it estimates roughly 90,000 people will keep coverage they would otherwise have dropped. Those are the agency’s projections, not counts of people who have signed up.
Jessica Altman, Covered California’s executive director, said in the release that more than half a million Californians already pay $50 or less a month for their health insurance. Of the roughly 1.7 million people now enrolled, the exchange says 20%, or 358,000, pay $0, and 41%, or 725,000, pay $100 or less.
Does $300 million make up for the federal money that ended?
No, according to the exchange’s own release. It says the state funding does not replace the nearly $2.5 billion a year Californians received from the federal government before the enhanced premium tax credits expired at the end of 2025.
In its July rate announcement, Covered California put the preliminary weighted average rate increase for 2027 at 9.9%. By October, the exchange said 55% of enrollees would see no premium increase, and 66% of enrollees, about 1.16 million people, pay $250 a month or less.
The July release gave three examples of what the subsidies can do. A Los Angeles couple with income of about $38,000 could get a Bronze plan at a $0 monthly premium, and a family of three in Orange County earning about $41,000 could find a Silver plan under $240 a month. A Sacramento family of four earning about $82,000 could get a Silver plan under $580 a month.
Is the plan a household has now still on the menu?
Twelve insurers will offer 2027 plans, the exchange says, including one new company. In the July announcement it named CalOptima Health as the newcomer, entering Region 18, which is Orange County.
One carrier is leaving two regions. Molina Healthcare is exiting Regions 15 and 18, and Covered California says roughly 1,600 Molina enrollees there can pick a new plan or move to the lowest-cost carrier in the same metal tier. Anyone who got a notice from a plan that is leaving has a decision to make before Dec. 31, not just a renewal to wait on.
The agency also says 92% of enrollees can choose from three or more carriers. Plan choices vary by region, so the carrier list is worth a look before renewing.
What else changes on Jan. 1?
Two federal changes take effect that day, according to Covered California’s important changes page. Only certain immigrant groups will be eligible for financial help, with green card holders listed as an example, though the October release says the changes do not affect most immigrants.
The second change is about income. Financial help is based on the income a person reports on the application, and starting with the 2026 tax year, filed in 2027, people who received too much help may have to repay the full amount. The page says that repayment will no longer be capped based on income.
The same page lists steps scheduled for 2028, including proof of eligibility before financial help is paid, and it notes that effective dates may change depending on court decisions. For 2027, the practical stake is reporting income accurately. The July release also said gig workers now have to recalculate their income each year.
Where can people get free help before the deadline?
The exchange says it has 16,000 certified enrollers and that 99.6% of Californians live within 15 minutes of in-person help. Enrollment help is free, confidential and offered in several languages, and people can find an enroller by location or call (800) 300-1506. The service center is open Monday through Friday from 8 a.m. to 6 p.m. and is closed Nov. 11 for Veterans Day.
Altman urged people to speak with a certified enroller before making the decision to go without coverage. Dr. Monica Soni, the exchange’s chief medical officer, said having health insurance is one of the best ways to protect a family if the unexpected happens.
The exchange cites a UCLA Center for Health Policy Research model that finds more than 1.1 million Californians remain uninsured and eligible for help. About 461,000 of them qualify for Covered California subsidies, and 682,000 qualify for low-cost or no-cost Medi-Cal. Applications are open at the exchange’s online application page.
Picking a Covered California plan before Dec. 31?
A plan picked after Dec. 31, or income entered wrong on the application, can leave a household paying more than it planned, and with the repayment cap gone, a subsidy overpayment can come due in full at tax time. A health premium is one of several places a household’s money leaks, which is why this story turns from the plan choice to the rest of the budget.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
