With enhanced federal subsidies expired, Covered California sees steady renewals but fewer new sign-ups

Despite the end of enhanced federal tax credits that helped millions of Americans afford health insurance, more than 1.9 million Californians either enrolled or renewed their coverage during the 2026 open enrollment period, setting a second-highest total in Covered California’s history.

Currently 935,700 Covered California’s enrollees reside in Southern California and 391,680 live in the Greater Bay Area. The Sacramento and San Joaquin Valley region has 205,610 individuals enrolled in coverage, while 148,620 are covered in San Diego.

“Despite Donald Trump and the Republicans’ continued attacks on health care access and affordability, Californians once again showed how valuable health insurance is to them by signing up for high-quality coverage through Covered California,” said Gov. Gavin Newsom. “Covered California continues to be a lifeline for working-class Californians. I’m proud that the state could step up and provide assistance to those who need it most so they can retain access to critical health insurance that helps protect them and their families.”

Out of the 1.9 million enrollees, 235,055 Californians selected a new health plan for 2026, while nearly 1.7 million renewed their existing coverage. The total also includes 389,590 Californians who enrolled in plans with state subsidies that help lower their monthly premiums. On average, these enrollees will receive $45 per month in financial assistance in 2026.

This year's $190 million investment from the Health Care Affordability Reserve Fund (HCARF) is successfully stabilizing insurance for the lowest-income residents after 2025 federal subsidy expirations, keeping 2026 renewal rates in line with last year’s levels. California’s state subsidies demonstrate that affordability makes a critical difference. 

On the other hand, for those middle-income consumers who lost all Enhanced Premium Tax Credits (EPTC), the cancellation rate among renewing enrollees has been 22%, double the 11% seen last year.

“This year’s open enrollment was unique for many reasons, amplified by the loss of the Enhanced Premium Tax Credits that have helped thousands of Californians pay for their monthly premiums,” Covered California Executive Director Jessica Altman said. “Many

Californians see the value in remaining covered, but they had to make sacrifices and shift to lower-tier plans. We see it as a commitment to health and the value that Covered California provides. We’re proud of what we’ve accomplished, but much work remains, with more federal changes for 2027 on the horizon.”

The loss of the EPTC led to fewer new signups across all ethnicities for Californians, with new enrollment down 32% overall. Latino communities were the most affected, with enrollment down 39% percent. The significant drops in health coverage is due to the fear surrounding immigration status, high rates of employment in jobs without insurance and language barriers among others. 

Those who didn’t sign up for coverage during open enrollment can still get health insurance during Covered California’s ongoing special-enrollment periods, which are available to those experiencing a major life event, like getting married, losing a job or having a child.

To learn more about their health plan options visit CoveredCA.com.