Covered California Enrollment Remains Strong at Nearly 2 Million Despite Loss of Federal Subsidies
More than 1.9 million Californians enrolled in health insurance plans through Covered California during the 2026 open enrollment period, despite the expiration of federal tax credits that previously helped lower costs for millions of Americans. This figure represents the second-highest enrollment total in the program’s history, demonstrating continued demand for affordable healthcare coverage in the state.
Enrollment Numbers: A Closer Glance
A total of 235,055 California residents selected new health insurance plans for 2026, while a record-breaking approximately 1.7 million individuals renewed their existing coverage. This brings the total number of Covered California subscribers to 1,927,371. Notably, 389,590 subscribers qualified for state-supported tax credits, receiving an average of $45 per month in financial assistance.
State Subsidies Offset Federal Changes
The strong renewal rates are largely attributed to record-high enrollment in 2025 and the implementation of state subsidies designed to mitigate the impact of the expired federal tax credits. Renewal rates remained consistent for low-income individuals receiving state subsidies at levels comparable to the previous federal assistance. However, cancellations increased among middle-class consumers who were no longer eligible for enhanced premium tax credits, with a cancellation rate of 22% compared to 11% the previous year.
California has allocated $190 million from the Health Care Affordability Reserve Fund (HCARF) in 2026 to provide state-supported tax credits to individuals with incomes below 165% of the federal poverty line. This support aims to maintain current monthly premium levels for those earning $23,475 or less annually (individual) or $48,225 or less (family of four).
Impact of Federal Tax Credit Repeal
The repeal of the enhanced premium tax credit led to a 32% decrease in new enrollment across all racial and ethnic groups. The Latinx community experienced the most significant decline, with a 39% drop in new sign-ups. New enrollments also decreased among Black or African American communities (34%) and the Asian American and Pacific Islander community (22%).
More than one-third (34%) of new enrollees in 2026 chose bronze-tier plans, a notable increase from less than one-quarter in the previous year. Over 130,000 renewing subscribers opted to switch to bronze plans.
Individuals earning over 400% of the federal poverty line, who were no longer eligible for tax credits, saw a 59% decrease in new subscriptions and a 22% cancellation rate – the highest among all income groups.
Regional Enrollment Breakdown
Approximately 49% (935,700) of Covered California subscribers reside in Southern California, while around 20% (391,680) live in the San Francisco Bay Area. The Sacramento and San Joaquin Valley regions account for 205,610 enrollees, and San Diego has 148,620.
Ongoing Enrollment Opportunities
Individuals who missed the open enrollment period can still enroll in health insurance through Covered California’s special enrollment, which is available to those experiencing qualifying life events such as marriage, job loss, or the birth of a child.
Consumers can explore their options, determine eligibility for financial assistance, and find available plans by visiting CoveredCA.com. Free, confidential assistance is available through more than 14,000 licensed agents and community-based organizations statewide, offering support in multiple languages. Consumers can also call an authorized enrollment agent or Covered California directly at (800) 300-1506.