Covered California announced its health plans and rates for the 2027 coverage year, with a preliminary weighted average rate increase of 9.9 percent and one new carrier entering the marketplace in 2027. Many enrollees can lessen the impact of increasing rates by shopping and switching to more affordable plans.
The proposed rate change can be attributed to many factors, including the increasing cost of health care and pharmacy expenditures alongside broader industry challenges. Additionally, actions taken by the federal government have driven up prices for consumers. Last year, federal lawmakers failed to extend enhanced federal tax credits that helped millions of Americans afford their monthly premiums.
California is continuing to fight for affordability and health care access by adding more insurance options and expanding the state’s subsidy program that will help one in four enrollees reduce their monthly premium, said Covered California Executive Director Jessica Altman.
In 2026, the California Legislature increased the amount of state funds available for the Covered California State Subsidy Program, appropriating $300 million in Health Care Affordability Reserve Fund (HCARF), up from $190 million. As a result, Californians with incomes up to 200 percent of the federal poverty level in 2027 ($31,920 for an individual or $66,000 for a family of four) will be eligible for financial help to lower the cost of monthly premiums.
While the state subsidy program is not enough to fill the gap left by the expiration of enhanced federal subsidies, more than 500,000 Californians are projected to receive a state subsidy in 2027, about 30 percent of all enrollees. Additionally, nearly 200,000 can choose from two Silver-tier plans with a $0 premium.
“When people have access to health insurance, they face less risk of financial hardship due to a medical issue, they miss fewer days of work, and they’re able to contribute more to their families and communities,” said Altman. “We’re grateful for Governor Newsom and the California Legislature for passing these critical investments to help more Californians get connected to the coverage they need.”
Despite ongoing federal rule changes that affect eligibility and affordability, Covered California maintains a strong marketplace, with 1,785,000 enrollees as of March 2026, and engages in active negotiations with health insurance companies to help keep Covered California one of the most affordable options for health insurance.
This has helped ensure that California’s rate increase of 9.9 percent is significantly lower than the preliminary national median rate increase of 14 percent. It’s also why for most of the past decade, the average cost for a benchmark plan in California has been lower than the national average.
Covered California’s 9.9 percent increase for 2027 reflects an average of proposed rates across all health insurance companies that offer individual plans. As it does every year, actual rates can differ greatly by plan and region. They are subject to final review and public comment by California’s Department of Managed Health Care. Final rates will take effect on Jan. 1, 2027.
Despite rising premiums and declining enrollment across the country, Covered California has connected 1.785 million Californians to health insurance this year, the second highest mark in its history.
“It really shows the value of having a Covered California plan, that even when prices increase, people are choosing to keep or switch their health plans rather than lose insurance altogether,” said Altman. “It’s clear that once people get access to health insurance, they want to keep it, so it is critical that we continue to fight and find ways to make that access affordable for all Californians.”
Plan options and prices differ depending on the region. For plan information in your area, Covered California recommends comparing plans online on CoveredCA.com. After entering some basic information like your income and location, you can find out what plans are available in your area, what they cover, how much they cost, and what kinds of financial help and programs you may be eligible to receive.
