Medi-Cal, California's Medicaid program, covers one in three Californians. When the federal COVID-19 continuous enrollment protection ended in 2023, California began its unwinding process, redetermining eligibility for millions of enrollees. That process continued into 2026, and hundreds of thousands of Californians have lost Medi-Cal coverage, sometimes incorrectly. Many terminations happened because mail did not reach enrollees, contact information was outdated, or income documentation was requested but never received by the Department of Health Care Services (DHCS). If you received a notice that your Medi-Cal coverage is ending or has ended in 2026, the most important thing to know is this: losing Medi-Cal is a qualifying life event that opens a 90-day Special Enrollment Period for Covered California. That 90-day SEP is longer than the standard 60-day SEP that applies to most other coverage-loss events, because CMS recognized that the unwinding process could create gaps for people who were eligible all along. Before enrolling in a Covered California plan, check whether you still qualify for Medi-Cal income limits, because Medi-Cal is free and Marketplace plans cost money even with generous subsidies.
Covered California is California's official ACA Marketplace. Unlike the federal healthcare.gov platform used by most other states, Covered California operates its own exchange and offers its own enrollment portal at coveredca.gov. Premium tax credits in 2026 are calculated based on your projected Modified Adjusted Gross Income (MAGI) and household size. At 2026 income levels between 138 percent and 400 percent of the Federal Poverty Level, most California households qualify for subsidies that reduce monthly premiums to $0 to $200 per month. The 2026 ACA subsidy cliff returned after enhanced Premium Tax Credits from the American Rescue Plan expired January 1, 2026, meaning households above 400 percent FPL no longer receive subsidies automatically, though Covered California has its own state-funded subsidies that extend assistance further for California residents. Before comparing plans, calculate your 2026 projected income using unemployment compensation, freelance income, and any other sources, because the Medi-Cal income limit of 138 percent FPL for 2026 sits at $22,025 for a single person or $45,540 for a family of four in California.
7 Steps to Get Coverage
Common Mistakes That Cost People Thousands
The most costly mistakes Californians make after losing Medi-Cal coverage in 2026:
- Skipping the Medi-Cal re-application step. Many 2026 Medi-Cal terminations were administrative, not income-based. Reapplying through Benefitscal.com takes 15 minutes, and if you still qualify, Medi-Cal is free with no monthly premium.
- Missing the 90-day Marketplace SEP window. Losing Medi-Cal gives you 90 days from the coverage termination date, not 90 days from receiving the notice. Check your termination letter for the exact end date and count from there.
- Reporting last year's income instead of 2026 projected income. Covered California subsidies are based on what you expect to earn in 2026, not what you earned in 2025. If your income dropped, report your actual current projected income, even if it is much lower than your 2025 tax return.
- Not enrolling children separately. Your children may qualify for Medi-Cal for Families (CHIP) at incomes up to 266 percent FPL even if you do not qualify for adult Medi-Cal. Children's Medi-Cal is year-round and usually free or very low cost.
- Choosing a Covered California plan without checking the provider network. Medi-Cal managed care plans and Covered California plans often use different networks. Verify that your current doctors accept your chosen Covered California plan before you enroll.
- Not appealing an incorrect Medi-Cal termination. If you received a termination notice and believe your income still qualifies for Medi-Cal, call 1-800-952-5253 to request a State Hearing before your coverage ends. Federal law requires California to maintain your coverage during the appeal if you request a hearing before the termination date.
Medi-Cal vs Covered California vs COBRA: Which Should You Choose?
Medi-Cal is always the first check after losing Medi-Cal coverage. Paradoxically, many people who lose Medi-Cal in 2026 still qualify for it. The Medi-Cal unwinding process in California was driven primarily by administrative redeterminations, not actual income changes. The California Department of Health Care Services (DHCS) reported that a significant portion of 2023-2026 disenrollments were due to returned mail, missing contact updates, and incomplete renewal packets, not income exceeding the limit. Reapplying at Benefitscal.com takes about 15 minutes, and coverage can start within days for expedited cases. Medi-Cal covers the same essential health benefits as Covered California plans, is free with no monthly premium, and has no deductible for most services.
Covered California makes sense when your 2026 income lands between 138 percent and 400 percent of the Federal Poverty Level ($22,025 to $63,840 for a single person; $45,540 to $132,000 for a family of four). At those income levels, premium tax credits typically reduce monthly premiums to $0 to $200. California also funds its own state subsidies that partially extend help above 400 percent FPL for qualifying residents, making Covered California more accessible here than in most states. Silver plans at 138 to 250 percent FPL also qualify for Cost-Sharing Reduction subsidies that lower your deductible and copays, often to near-Medi-Cal levels. The main trade-off compared to Medi-Cal is a monthly premium, even if subsidized, and potential deductibles before coverage kicks in fully.
COBRA is rarely the right choice for people transitioning from Medi-Cal. COBRA only applies if you previously had employer-sponsored group coverage before enrolling in Medi-Cal, and you are still within 60 days of that original qualifying event. COBRA charges 102 percent of the full premium, which for an individual typically runs $500 to $1,000 per month in California in 2026, compared to $0 to $200 on Covered California with subsidies. The only scenario where COBRA edges out Covered California after Medi-Cal loss is if you are midway through a covered treatment with a specific specialist who accepts only your former employer plan and no Covered California plans, or if you have already met a large annual deductible on your previous employer plan that would reset under a new plan. For almost every other scenario, Covered California with premium tax credits is the better financial decision.
Why Medi-Cal Terminated Your Coverage in 2026
California's Medi-Cal unwinding process began in April 2023 after the federal COVID-19 continuous enrollment protection expired. During the pandemic, federal law prohibited states from disenrolling Medicaid beneficiaries, which caused enrollment to swell to record levels. When those protections ended, California was required to redetermine eligibility for approximately 14 million Medi-Cal enrollees over a 14-month unwinding period. That redetermination work extended into 2026 because California adopted a phased approach and received additional CMS extensions. DHCS has identified several categories of termination in the 2026 renewals: income-based terminations (income genuinely exceeded the 138 percent FPL limit), procedural terminations (renewal forms not returned in time, address not current, documentation missing), and administrative errors (systems issues, data matching errors, language access failures).
Procedural terminations are the most actionable category: if your Medi-Cal ended because a renewal packet went to an old address, or because you did not receive the renewal notice, or because documentation was lost in the mail, you can appeal and potentially restore coverage retroactively. California law requires DHCS to maintain coverage during a pending State Hearing appeal, meaning that filing an appeal before your termination date can prevent any gap in coverage. The KFF Medicaid Unwinding Tracker reports that California's disenrollment rate in the unwinding has been substantial, and advocacy groups have documented that procedural terminations account for a large share of the disenrollments.
Medi-Cal Income Limits for California 2026: Am I Still Eligible?
California expanded Medi-Cal under the ACA and has maintained expansion continuously. Adult Medi-Cal income eligibility in California is set at 138 percent of the Federal Poverty Level using MAGI (Modified Adjusted Gross Income) rules. For 2026, those thresholds are based on HHS ASPE 2026 Poverty Guidelines. Use the table below to check whether your current 2026 income qualifies you for Medi-Cal. Unemployment compensation, freelance income, Social Security benefits (for people under 65 who are not Medicare-eligible), and wages all count toward MAGI. What does not count: child support received, gifts, Supplemental Security Income (SSI), SNAP benefits, and most veterans benefits.
Medi-Cal and Covered California subsidy income thresholds by household size, 2026 (California)| Household size | 138% FPL (Medi-Cal limit, 2026) | 250% FPL (Silver CSR cutoff, 2026) | 400% FPL (federal subsidy cliff, 2026) |
|---|
| 1 | $22,025 | $40,000 | $63,840 |
| 2 | $29,863 | $54,100 | $86,560 |
| 3 | $37,702 | $68,300 | $109,280 |
| 4 | $45,540 | $82,500 | $132,000 |
| 5 | $53,378 | $96,700 | $154,720 |
| 6 | $61,217 | $110,900 | $177,440 |
| 7 | $69,055 | $125,100 | $200,160 |
| 8 | $76,894 | $139,300 | $222,880 |
| Each additional person | +$7,838 | +$14,200 | +$22,720 |
2026 Medi-Cal limit uses HHS ASPE 2026 Federal Poverty Guidelines for 48 contiguous states. California uses the same federal FPL thresholds. The 400% FPL subsidy cliff returned for 2026 after enhanced PTCs expired January 1, 2026. California's state-funded subsidies may extend partial assistance above 400% FPL for some income brackets; check coveredca.gov for your specific zip code.
Source: HHS ASPE 2026 Poverty Guidelines, DHCS Medi-Cal eligibility rules, Covered California 2026 plan data
Frequently Asked Questions
What is the SEP window for losing Medi-Cal in California?
Losing Medi-Cal triggers a 90-day Special Enrollment Period for Covered California, which is longer than the standard 60-day SEP that applies to most other coverage-loss events. The 90-day window starts on your Medi-Cal coverage termination date, not the date you received your notice. For example, if Medi-Cal coverage ends June 30, 2026, your Covered California SEP runs through September 28, 2026. Medi-Cal itself is year-round, meaning you can reapply for Medi-Cal at any time with no deadline. To open the SEP on coveredca.gov, select 'Lost Other Coverage' as your qualifying event and enter your Medi-Cal termination date.
Can I re-enroll in Medi-Cal after being terminated in 2026?
Yes, and this is often the right first step. Medi-Cal has no enrollment deadline, so you can reapply any time your income falls at or below 138 percent of the Federal Poverty Level, which is $22,025 for a single person or $45,540 for a family of four in 2026. Many 2026 Medi-Cal terminations in California were administrative, not income-based. If your termination notice says 'failed to complete renewal' or 'returned mail,' reapply immediately at Benefitscal.com. Coverage can often be restored retroactively or within days for expedited cases. If you believe the termination was incorrect, you can also file a State Hearing appeal at 1-800-952-5253 and California must maintain your coverage while the appeal is pending.
How do I document my qualifying event for Covered California's 90-day SEP?
Covered California requires documentation that your Medi-Cal coverage ended. The primary document is your Medi-Cal termination notice, which shows the coverage end date and the reason for termination. Log in to coveredca.gov, navigate to the enrollment application, and select 'Lost Other Coverage' as your special enrollment reason. Upload or submit your termination letter, your proof of California residency, your Social Security number, and your projected 2026 income documents (pay stubs, unemployment award letter, or tax return). Covered California may request additional verification within 90 days of your enrollment, so keep all documents readily accessible.
What happens to my children's coverage when I lose Medi-Cal?
Children who lose Medi-Cal may separately qualify for Medi-Cal for Families, which is California's integrated CHIP program under the Medi-Cal umbrella. Children qualify for Medi-Cal for Families at household incomes up to 266 percent of the Federal Poverty Level, which is $87,780 for a family of four in 2026. Enrollment is year-round with no deadline, and premiums are very low or free depending on income. Even if your income exceeds the adult Medi-Cal limit, your children may still qualify for this program. Apply at Benefitscal.com and specify that you are applying for your children's coverage.
Do I qualify for subsidies on Covered California after losing Medi-Cal?
Most people losing Medi-Cal qualify for significant Covered California subsidies. Premium tax credits are available at any income between 138 percent and 400 percent of the Federal Poverty Level ($22,025 to $63,840 for a single person in 2026). California's state-funded subsidies also extend partial assistance above 400 percent FPL for qualifying residents. Silver plans between 138 and 250 percent FPL also qualify for Cost-Sharing Reduction subsidies that lower deductibles and copays. To calculate your specific subsidy, enter your projected 2026 household income at coveredca.gov. Note that the enhanced Premium Tax Credits from the American Rescue Plan expired January 1, 2026, so subsidy amounts in 2026 reflect the return of the standard subsidy structure.
Can I appeal my Medi-Cal termination?
Yes. California gives you the right to appeal a Medi-Cal termination by requesting a State Hearing. Call 1-800-952-5253 or request a hearing online through Benefitscal.com. The critical advantage of appealing before your coverage termination date is that California law requires DHCS to maintain your Medi-Cal coverage during the appeal process under federal 'aid-continuing' rules. You have 90 days from the notice date to request a hearing. If you missed that window, you can still reapply for Medi-Cal at any time. If the appeal is upheld, your coverage can be restored retroactively with no coverage gap.
What if I miss the 90-day Covered California SEP after losing Medi-Cal?
If you miss the 90-day Marketplace SEP window after losing Medi-Cal, your main options are: (1) reapply for Medi-Cal at any time if your income qualifies (year-round, no deadline), (2) enroll during Covered California's annual Open Enrollment Period, which runs November 1 through January 31 for 2027 coverage, (3) check whether any other qualifying life event opens a new SEP (marriage, having a child, or moving within California with new plan availability). Short-term health plans are available in California but do not cover pre-existing conditions and do not count as minimum essential coverage under ACA standards.
Is COBRA an option after losing Medi-Cal?
COBRA is available only if you had employer-sponsored group coverage before enrolling in Medi-Cal and you are still within 60 days of that original qualifying event. COBRA continuation costs 102 percent of the full premium, typically $500 to $1,000 per month for an individual in California in 2026, compared to $0 to $200 for a subsidized Covered California plan. For most people transitioning out of Medi-Cal, Covered California with premium tax credits is a significantly cheaper option. COBRA makes sense only if you have ongoing specialized care with a provider who is not in any Covered California network, or if you have already met a large annual deductible on the prior employer plan that would reset under a new plan.
