Covered California Reports 2026 Enrollment Data and Challenges
Covered California, the state's health insurance marketplace, reported substantial enrollment numbers for 2026, with over 1.9 million Californians signing up or renewing their health insurance plans. Despite the lapse of federal tax credits, 235,055 individuals selected new plans, while nearly 1.7 million retained their coverage. Overall enrollment reached nearly 1.93 million, approaching record levels. This included about 390,000 individuals benefiting from state subsidies that lower their monthly premiums, averaging $45 in assistance for 2026.
High renewal rates stem from previous record enrollments, with California's state subsidies playing a crucial role in maintaining coverage affordability. Consumers with lower incomes, eligible for state subsidies reminiscent of past federal support, showed consistent renewal rates. However, middle-income individuals, who lost enhanced federal premium tax credits, faced a 22% cancellation rate, marking an increase from the previous year.
The state dedicated $190 million from the Health Care Affordability Reserve Fund (HCARF) to provide state-funded tax credits, ensuring stable premiums for those earning up to 165% of the federal poverty level. Despite this, new enrollments dropped by 32% compared to the prior year, while renewals rose by 4%. After four years of growth, 2026 experienced a slight dip in total enrollment, which remains the second-highest in the program’s history.
Enrollment Challenges
Executive Director Jessica Altman highlighted the unique obstacles faced during this enrollment period, especially following the expiration of Enhanced Premium Tax Credits. Many Californians opted for lower-tier plans, underscoring their determination to sustain coverage via Covered California. Altman anticipates further federal changes in 2027 that may impact enrollment strategies.
The decline in enrollments was more pronounced among certain demographics, with Latino communities experiencing a 39% decrease and Black or African American individuals facing a 34% reduction. Signups for those earning above 400% of the federal poverty level saw a 59% decline, with this group showing the highest renewal cancellation rate at 22%.
Geographically, Southern California accounts for nearly half of Covered California's enrollees, with significant numbers in the Greater Bay Area, Sacramento, San Joaquin Valley, and San Diego regions. Covered California offers special enrollment periods for individuals undergoing life changes such as marriage, job loss, or childbirth, providing access to health insurance outside the standard enrollment window. Additional information and assistance are accessible through CoveredCA.com or a network of licensed agents. The organization operates independently within the state government, facilitating access to health insurance and financial aid for residents of California.