Covered California has connected nearly 1.8 million people to health insurance this year and actively negotiates with health insurance companies to get the lowest possible prices for consumers.  California’s rate increase of 9.9% is significantly lower than the preliminary national median rate increase of 14% — and why for most of the past decade, the average cost of a benchmark plan in California has been lower than the national average.

In Southern California, many residents are paying less than the national average for healthcare despite overall rate increases because residents have seven health insurance companies to choose from, which leads to increased competition and lower costs.

However, new federal policies and rising costs negatively affected enrollment across the state, with a 7.3% decrease in overall enrollment compared to this time last year. The Black community in Southern California has been among the hardest hit. Enrollment among those who identify as Black or African American decreased by nearly 18% across Los Angeles, Riverside, and San Bernardino counties.

“We know the headlines out there about rising health insurance costs can be scary, but going without health insurance is a risk that could cost you a lot more later, and coverage options may be more affordable than you think,” said Covered California Executive Director Jessica Altman.

Due to existing federal tax credits and California’s enhanced subsidy program, 60% of Covered California enrollees will see no increase in their monthly premium next year, 26% will remain eligible for $0 premiums without changing plans, and many others may pay less each month.

Across Southern California, about 400,000 current enrollees will be eligible for enhanced state subsidies for 2027, helping to further reduce costs. Depending on their income, new enrollees for 2027 will also qualify for financial help from the state to help pay for their Covered California plan.

Gov. Gavin Newsom and the California Legislature also increased the amount of state funds available to help cover the costs of monthly premiums for hundreds of thousands of Californians, which means individuals with incomes up to 200% of the federal poverty level in 2027 ($31,920 for an individual or $66,000 for a family of four) will be eligible for expanded financial help from the state.

“We know that access to care is foundational for health and well-being, by helping families get preventive care, manage chronic conditions, and face unexpected needs,” said Covered California Chief Medical Officer Dr. Monica Soni. “Getting a plan through Covered California opens the door to getting the care you need, no matter which plan you choose.”

Every plan offered through Covered California covers 10 essential health benefits like emergency services, hospitalizations, prescription drugs, and pediatric care — including children’s dental and vision.

Those who are already enrolled in a plan through Covered California can renew or change their plan now. Open enrollment takes place from Nov. 1, through Jan. 31, 2027. Residents who experience certain life changes can also apply during Covered California’s ongoing special-enrollment period, where the most common changes are losing health insurance, moving to a new area, getting married, or having a baby.

You can learn more about your options by visiting CoveredCA.com or calling Covered California, where you can easily find out if you qualify for financial help and see the coverage options in your area. Free and confidential assistance is also available over the phone through certified agents, community-based organizations, and certified enrollers throughout the state.