2027 Covered California: Rates Up 9.9%, But $0 Premiums Remain

Covered California has officially released the 2027 health insurance plans and projected premium rates. Due to rising medical service costs and increased prescription drug spending, next year’s premiums, subsidy rules, and carrier service areas across the state will undergo significant adjustments. Whether you are a current Covered California enrollee or planning to sign up for the first time during Open Enrollment, it is important to review these upcoming changes. If you have any questions, feel free to click the button below to contact KCAL Insurance for assistance!

1. 2027 Covered California Premium Changes: Weighted Average Increase of 9.9%

According to data released by Covered California, the weighted average premium for 2027 is projected to increase by 9.9%. This adjustment is primarily driven by rising medical service prices and the continued escalation of high‑cost prescription drug expenses. The 9.9% figure reflects the statewide average; actual increases will vary depending on region and insurance carrier. Enrollees can compare and select lower‑priced plans within the same metal tier to help reduce their individual premium burden.

Rate Increase by Region:

Premium Increases by Insurance Company:

Please Note: The figures released are projected rates and must undergo review by California regulators. Final rates will officially take effect on January 1, 2027.

2. Expanded State Subsidies: California Adds $300 Million in Assistance

Against the backdrop of the expiration of the enhanced federal tax credits and policy adjustments, California has taken proactive measures to ease residents’ healthcare burdens raising the allocation of the Health Care Affordability Reserve Fund (HCARF) from the original $190 million to $300 million, significantly expanding the scope of state premium subsidies. The actual premiums that enrollees need to pay depend not only on rate increases but also on individual income and the subsidies available.

Below are the income thresholds for California state subsidies under Covered California in 2027:

• Annual income limit for a single individual: approximately $31,920
• Annual income limit for a family of four: approximately $66,000

According to Covered California’s estimates, more than 500,000 residents will qualify for subsidies in 2027, accounting for about 30% of total enrollees; among them, nearly 200,000 will be able to access a Silver plan with a $0 premium after subsidies are applied.

Case Example: A couple living in Los Angeles with an annual income of about $38,000, after government subsidies are applied, can enjoy a Bronze plan with a $0 premium at no cost.

3. Changes in Partner Insurance Networks: Some Regions Face Plan Replacements

In 2027, Covered California will partner with 12 well‑known insurance companies to ensure that residents in most regions of the state have at least two insurers available within their jurisdiction for comparison and choice. However, enrollees in certain areas need to pay attention to market adjustments by insurance companies:

• New Entry: CalOptima Health officially joins Covered California, offering plans to residents of Orange County;
• Market Exit: Molina Healthcare will withdraw from the Northeastern Los Angeles and Orange County markets, affecting about 1,600 enrollees who will need to reselect suitable plans.

Since the withdrawal of insurance companies will directly impact the existing network doctors and medical facilities of some enrollees, residents in affected regions are advised to plan ahead.

To ensure seamless continuity of your health insurance, please pay close attention to the following important enrollment windows:

• Starting October 1, 2026: Current Covered California enrollees may begin renewing or applying to switch plans;
• November 1, 2026 – January 31, 2027: The 2027 Open Enrollment Period officially begins. Enrollees may compare plan details and premiums across insurance companies based on personal income, region, and current coverage, and select the option that best suits their needs.

If you have any questions, please feel free to contact KCAL Insurance at 626-369-8812. Professional brokers will assist you in reviewing the 2027 health insurance options that best fit your family’s health needs and budget.