California's ACA marketplace, Covered California, covers close to 2 million residents through plans offered by major insurers. For 2026, the most important thing to know upfront: the enhanced federal subsidies that held premiums low from 2021 through 2025 have expired. If your income is above 400% of the federal poverty level (FPL), you now receive zero federal premium tax credits. For most Californians who do qualify, a significant state-funded subsidy still helps lower costs, and the state committed $190 million to protect the lowest-income enrollees from sharp premium increases.
Quick Answer: As of 2026, Covered California offers Bronze, Silver, and Gold plans to California residents earning between 138% and 400% of FPL ($21,597 to $62,600 for a single person). Federal subsidies are available up to 400% FPL only. California's state subsidy cushions premium increases for households earning up to 165% FPL. Open enrollment for 2026 ran November 1 to January 31, but Special Enrollment Periods remain available year-round for qualifying life events.
What Changed for California ACA Plans in 2026
The American Rescue Plan Act's enhanced premium tax credits (PTCs) expired December 31, 2025. Congress did not extend them. This has two major effects in 2026:
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The 400% FPL subsidy cliff is back. Earn one dollar above 400% FPL and you receive no federal premium tax credit at all. In 2024 and 2025, subsidies phased out gradually beyond that threshold. That phase-out is gone.
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Premiums are higher. Covered California announced an average 10.3% rate increase for 2026. Without the enhanced subsidies, many middle-income enrollees are paying significantly more than they did in 2025.
California responded with a $190 million state-level subsidy program targeting households earning up to 165% FPL. This kept premiums near $0 for roughly 333,000 of the lowest-income marketplace enrollees. But Californians earning above 165% FPL, especially those between 300% and 400% FPL, are bearing the full weight of both the rate increase and the subsidy rollback.
2026 Covered California Income Limits by Household Size
The 2025 federal poverty guidelines determine subsidy eligibility for all 2026 plans. Here is how the key thresholds break down for California:
| Household Size | 100% FPL | 138% FPL (Medi-Cal limit) | 150% FPL | 250% FPL | 400% FPL (subsidy cutoff) |
|---|
| 1 | $15,650 | $21,597 | $23,475 | $39,125 | $62,600 |
| 2 | $21,150 | $29,187 | $31,725 | $52,875 | $84,600 |
| 3 | $26,650 | $36,777 | $39,975 | $66,625 | $106,600 |
| 4 | $32,150 | $44,367 | $48,225 | $80,375 | $128,600 |
| 5 | $37,650 | $51,957 | $56,475 | $94,125 | $150,600 |
| 6 | $43,150 | $59,547 | $64,725 | $107,875 | $172,600 |
| 7 | $48,650 | $67,137 | $72,975 | $121,625 | $194,600 |
| 8 | $54,150 | $74,727 | $81,225 | $135,375 | $216,600 |
| Each additional | +$5,500 | +$7,590 | +$8,250 | +$13,750 | +$22,000 |
How to read this table:
- Below 138% FPL: You likely qualify for Medi-Cal (California's Medicaid program) rather than marketplace coverage.
- 138% to 400% FPL: You may qualify for federal premium tax credits through Covered California.
- Above 400% FPL: No federal subsidy is available as of 2026. You can still enroll in a marketplace plan but pay full price.
California residents earning between 138% and 165% FPL may also qualify for the state subsidy, which held premiums near $0 for this group in 2026.
Covered California Plan Tiers: Bronze, Silver, and Gold
Covered California offers plans in three main metal tiers. Each tier reflects a different balance between monthly premium and out-of-pocket costs when you use care.
| Plan Tier | Average Premium Share You Pay | Deductible (typical) | Best For |
|---|
| Bronze | Lowest monthly premium | High ($5,000-$7,000) | Healthy adults who rarely use care |
| Silver | Mid-range premium | Medium ($2,000-$4,000) | Most enrollees; required for cost-sharing reductions |
| Gold | Higher premium | Low ($0-$1,500) | People with frequent healthcare needs |
Silver plans and cost-sharing reductions (CSRs): If your household income falls between 138% and 250% FPL, you qualify for cost-sharing reductions in addition to the premium tax credit, but only if you choose a Silver plan. CSRs reduce your deductible, copays, and out-of-pocket maximum, making Silver a much stronger value than Bronze at this income range.
As of 2026, the Silver tiers available depend on your income:
- Silver 94 (income 138% to 150% FPL): Lowest out-of-pocket, highest CSR value
- Silver 87 (income 150% to 200% FPL): Strong cost-sharing reductions
- Silver 73 (income 200% to 250% FPL): Moderate cost-sharing reductions
- Silver 70 (income above 250% FPL): Standard Silver with no CSR benefit
Who Qualifies for Covered California in 2026
To enroll in a Covered California plan and receive premium tax credits, you must meet all of the following criteria as of 2026:
- Live in California
- Be a U.S. citizen, national, or lawfully present immigrant
- Not be incarcerated
- Not be eligible for Medicare (generally, under age 65 unless you have a qualifying disability)
- Not have access to affordable employer-sponsored health coverage (defined as coverage costing more than 9.96% of household income for employee-only coverage in 2026)
- Have income at or above 138% FPL (below this, Medi-Cal typically applies)
- Have income at or below 400% FPL to receive any federal premium tax credit
You do not need to be employed to qualify. Self-employed Californians, gig workers, freelancers, and people between jobs all commonly use Covered California.
What Premiums Actually Look Like in 2026
Premium costs depend on your age, household size, income, region, and the plan you select. Below are rough benchmark premium examples for the second-lowest-cost Silver plan (SLCSP), which is what the subsidy calculation is based on, for a 40-year-old non-smoker in 2026 before and after the tax credit:
| Annual Income (Single Person) | % FPL | Full Monthly Premium | Est. Monthly Tax Credit | Your Monthly Cost |
|---|
| $20,000 | 128% | ~$450 | Medi-Cal instead | $0 via Medi-Cal |
| $25,000 | 160% | ~$450 | ~$430 (+ state subsidy) | Near $0 |
| $35,000 | 224% | ~$450 | ~$310 | ~$140 |
| $45,000 | 288% | ~$450 | ~$170 | ~$280 |
| $55,000 | 352% | ~$450 | ~$60 | ~$390 |
| $65,000 | 415% | ~$450 | $0 (above 400% FPL) | ~$450 |
These are estimates. Actual premiums vary by region, plan, and insurer. Use the Covered California plan finder at coveredca.com for an exact quote.
How to Enroll in Covered California for 2026
Open enrollment for 2026 coverage ran from November 1, 2025, through January 31, 2026. If you missed that window, you can still enroll during a Special Enrollment Period (SEP) if you experience a qualifying life event.
Qualifying Life Events for a Special Enrollment Period
- Loss of other health coverage (job loss, aging off a parent's plan, losing Medi-Cal eligibility)
- Marriage or domestic partnership
- Birth, adoption, or placement of a child
- Moving to a new coverage area within California
- Gaining lawful immigration status
- Income change that makes you newly eligible
SEP enrollment generally gives you 60 days from the qualifying event to enroll or change plans.
Step-by-Step: How to Apply Through Covered California
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Gather your documents. You will need: Social Security numbers for all household members, income documents (pay stubs, tax returns, or self-employment records), employer information if you have job-based coverage available, and immigration documents if applicable.
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Go to coveredca.com. This is California's official state marketplace. Do not use a third-party site to apply. Go directly to the official portal to avoid scams.
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Create an account or log in. If you applied in a previous year, log in with your existing credentials. New applicants create an account with a valid email address.
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Complete the application. Enter household size, income, and residency information. The system will automatically screen you for Medi-Cal if your income falls below 138% FPL.
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Compare plans. Filter by metal tier, monthly premium, deductible, and which doctors or hospitals are in-network. The site shows your estimated tax credit applied to each plan.
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Enroll and pay your first premium. Coverage does not begin until you pay your first monthly premium. Make sure to pay by the deadline shown in your enrollment confirmation.
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Report income changes during the year. If your income changes significantly, update your application at coveredca.com. Underreporting income can result in a repayment of excess credits at tax time.
You can also apply by phone at 1-800-300-1506 or work with a certified enrollment counselor or insurance agent at no charge.
Medi-Cal vs. Covered California: Which One Are You in?
Many Californians do not realize they are in Medi-Cal territory until they try to enroll in marketplace coverage. Here is the key distinction:
- If your household income is below 138% FPL, you likely qualify for Medi-Cal (California's version of Medicaid). Medi-Cal is free or very low cost and covers medical, dental, and vision for most adults and children.
- If your income is between 138% and 400% FPL, you are in Covered California territory and qualify for subsidized marketplace plans.
- If your income is above 400% FPL, you can still use Covered California but will pay full premium with no subsidy.
Covered California and Medi-Cal share the same application system, so if you apply through coveredca.com and your income is below the threshold, you will automatically be routed to Medi-Cal. You do not need to apply separately.
Navigating Covered California as a Self-Employed Californian
Self-employment income adds complexity because it fluctuates. Here is what you need to know:
- Report your projected annual net income (revenue minus business expenses).
- If you expect income to vary, you can update your application mid-year when your income picture becomes clearer.
- If your net income falls below 100% FPL and you are not eligible for Medi-Cal (e.g., you are not a citizen), you may qualify for coverage at 100% FPL through a special provision.
- Gig workers and 1099 contractors who are offered no employer coverage are generally fully eligible for Covered California subsidies based on net income.
California-Specific Resources for 2026
California has additional support tools beyond the federal marketplace:
- Covered California: coveredca.com or 1-800-300-1506
- Medi-Cal (BenefitsCal): benefitscal.com or 1-800-541-5555
- HICAP (Health Insurance Counseling and Advocacy Program): Free, unbiased counseling on Medicare and health coverage options, 1-800-434-0222
- Certified Enrollment Counselors: Free in-person help through community organizations across California. Find one at coveredca.com/find-help
Frequently Asked Questions
Do I qualify for Covered California in 2026 if I just lost my job?
Yes. Losing job-based health coverage is a qualifying life event that opens a Special Enrollment Period. You have 60 days from your last day of employer coverage to enroll in a Covered California plan. Your income for the SEP calculation uses your projected annual income, not what you earned before losing your job, so even a sharp income drop may make you eligible for significant subsidies or Medi-Cal.
What happens if I earn over 400% FPL in California for 2026?
You receive no federal premium tax credit as of 2026. The enhanced subsidy cliff that softened this cutoff from 2021 to 2025 is gone. You can still enroll in a Covered California plan and get any insurer discounts available through the exchange, but you pay the full premium. A single adult at 420% FPL in 2026 (about $65,900) gets zero federal help and may be paying $400 to $600 or more per month for a Silver plan.
What is the state subsidy California is providing in 2026?
California allocated $190 million for a state-level premium subsidy in 2026 aimed at enrollees earning up to 165% FPL (roughly $25,823 for a single person or $53,048 for a family of four). This program kept premiums near $0 for roughly 333,000 low-income enrollees whose federal subsidies alone were not enough to cover the premium increase.
Can undocumented immigrants get health coverage in California?
Yes, though not through the federally subsidized ACA marketplace. California has expanded Medi-Cal eligibility to all income-qualifying residents regardless of immigration status, including adults over 26. As of 2024, this expansion is complete for all age groups. Income limits and the application process are the same as for citizens through BenefitsCal.
What are cost-sharing reductions (CSRs) and do I qualify?
CSRs reduce what you pay out of pocket when you use healthcare, including deductibles, copays, and your maximum annual spending cap. To qualify in 2026, your income must be between 138% and 250% FPL and you must select a Silver plan. At 200% FPL, a CSR Silver plan can cut your deductible from $3,500 to under $1,000 and your out-of-pocket maximum from $9,000 to around $3,000. CSRs are only available on Silver plans, not Bronze or Gold.
How do I know if my doctor is in-network on a Covered California plan?
Each insurer in Covered California has its own provider network. Before enrolling, use the plan's provider directory (linked from the coveredca.com plan comparison tool) to confirm your preferred doctors, specialists, and hospitals are included. Network breadth varies significantly between PPO and HMO plans. HMOs are cheaper but restrict you to a narrower network. Switching plans after enrollment requires a qualifying event or waiting for open enrollment.
Is the open enrollment period still running for 2026?
The main 2026 open enrollment window closed January 31, 2026. To enroll now, you need a qualifying life event that triggers a Special Enrollment Period. If you have had a recent life change (job loss, move, marriage, new child, or income change), you may still be able to enroll. Check your eligibility and use the screener at CoveredUSA to find out what coverage you qualify for in under 2 minutes.
What is the difference between a Bronze and Silver plan in California?
Bronze plans have lower monthly premiums but much higher out-of-pocket costs when you use healthcare. Silver plans have moderate premiums and moderate cost-sharing. If your income is below 250% FPL, Silver becomes far more valuable than Bronze because you get cost-sharing reductions that slash your deductible and out-of-pocket maximum, but only on Silver. For someone at 200% FPL, a Silver 87 plan in 2026 could save thousands of dollars compared to Bronze if they have any significant healthcare use during the year.
Understanding your options in the 2026 Covered California landscape takes some work, especially with the subsidy changes from the expiration of enhanced PTCs. The best first step is checking exactly what you qualify for based on your household size and income.
Check your eligibility now at CoveredUSA. It takes 2 minutes.
