Yes, Covered California is California’s version of Obamacare. It’s the state-run health insurance marketplace created under the Affordable Care Act (ACA), the federal law commonly called Obamacare. When you enroll through Covered California, you’re buying ACA-compliant health plans and accessing the same federal premium tax credits available to marketplace shoppers nationwide. California was one of the first states to build its own exchange rather than using the federal HealthCare.gov platform.
How Covered California Connects to the ACA
The Affordable Care Act required every state to offer residents a way to shop for health insurance and receive income-based financial help. States could either build their own marketplace or default to the federal one. California chose to build its own, launching Covered California in 2013. The plans sold through Covered California follow all ACA rules: they must cover essential health benefits, cannot deny you for pre-existing conditions, and cannot charge more based on your health history.
Because Covered California operates under federal law, changes at the federal level directly affect it. For example, federal rules finalized for 2026 eliminated premium tax credits for people who enroll through certain special enrollment periods outside the standard open enrollment window. Federal policy also rescinded marketplace coverage for DACA recipients starting in August 2025. When federal rules shift, Covered California’s offerings shift with them.
What California Adds Beyond Federal Requirements
California layers its own protections and subsidies on top of the federal framework. The most notable is the state individual mandate: California residents must maintain qualifying health coverage or face a tax penalty. For 2025, that penalty is $950 per uninsured adult and $475 per child, or 2.5% of household income above the tax filing threshold, whichever is higher. A family of four with two adults and two children could owe $2,850.
The state also funds its own premium subsidies. In 2026, California allocated $190 million from its Health Care Affordability Reserve Fund to provide state-funded tax credits for people earning up to 165% of the federal poverty level, which works out to about $23,475 for an individual or $48,225 for a family of four. Nearly 390,000 Californians enrolled with these state subsidies, receiving an average of $45 per month in additional premium help. These state credits were designed to fill the gap left when enhanced federal subsidies expired at the end of 2025, keeping monthly costs roughly in line with the prior year for the lowest-income enrollees.
Plan Tiers and What They Cover
Covered California offers the same four metal tiers used by ACA marketplaces everywhere. The tier you pick determines how you and the insurance company split costs:
- Bronze: The plan covers 60% of costs, you pay 40%. Premiums are lowest, but out-of-pocket costs are highest when you use care.
- Silver: The plan covers 70%, you pay 30%. Silver plans are especially valuable if you qualify for cost-sharing reductions (more on that below).
- Gold: The plan covers 80%, you pay 20%.
- Platinum: The plan covers 90%, you pay 10%. Premiums are highest, but you pay the least when you actually see a doctor or fill prescriptions.
These percentages reflect averages across all enrollees in that tier, not a guarantee for every individual visit. Your actual costs depend on your specific plan’s deductibles, copays, and coinsurance structure.
Who Qualifies for Financial Help
Federal premium tax credits are available to people with household income between 100% and 400% of the federal poverty level, and in recent years eligibility extended above 400% as well. To qualify, you can’t have access to affordable employer coverage that meets minimum value standards, and you can’t be eligible for government programs like Medi-Cal, Medicare, or TRICARE. You also can’t file taxes as married filing separately, with limited exceptions for domestic abuse situations.
If you qualify for a Silver plan and have lower income, you may also get cost-sharing reductions that lower your deductibles and copays. These enhanced Silver plans come in three levels. Silver 94 plans (covering 94% of costs instead of the standard 70%) are available to people earning 100% to 150% of the federal poverty level. Silver 87 covers those earning 150% to 200%, and Silver 73 applies above 200%. These cost-sharing reductions only apply to Silver plans, which is why financial counselors often recommend Silver for lower-income enrollees even if a Bronze plan has a cheaper monthly premium.
Covered California vs. Medi-Cal
Medi-Cal is California’s Medicaid program, and it’s separate from Covered California. Your income determines which one you qualify for. Adults generally qualify for Medi-Cal with income up to 138% of the federal poverty level. Children qualify with family income up to 266%, and pregnant individuals qualify up to 213%.
If your income is above the Medi-Cal threshold but you still need help affording coverage, that’s where Covered California comes in. You’ll shop for a private plan and potentially receive premium tax credits and cost-sharing reductions to bring the price down. If your income changes during the year and you cross the Medi-Cal line in either direction, you may need to transition between the two programs.
When and How to Enroll
Open enrollment runs from November 1 through January 31 each year. That’s the standard window when anyone can sign up for or change a Covered California plan. If you miss it, you can still enroll during a special enrollment period triggered by a qualifying life event, such as losing other coverage, getting married, having a baby, or moving to a new area. For most qualifying events, coverage starts on the first day of the month after you select a plan.
You apply through CoveredCA.com or by working with a certified insurance agent or enrollment counselor at no extra cost. The application asks about household size, income, and whether you have access to other coverage. Based on your answers, the system determines whether you qualify for Medi-Cal, for Covered California with subsidies, or for Covered California at full price. You won’t need to figure out which program fits on your own.