What is Covered California?

When it comes to getting your own health insurance, navigating your options and finding affordable coverage can be complicated. That’s where Covered California comes in.

Covered California is a free service from the state helping residents get quality affordable health insurance — but we’re much more than that. Through Covered California, you can shop for a plan that works for you, your family or your small business. If you qualify, you’ll also get financial help toward your monthly premium (many people pay $10 a month or even less). All plans include essential health benefits such as preventive care and emergency services. Plus, you’ll have access to free support to navigate your options.

Whether your job doesn’t offer health insurance or you experienced a big life change (like having a child), there are plenty of reasons why you might need to find a health plan. No matter your health status, language or income, Covered California has your back.

Read on for how Covered California works — and why that can mean better access to affordable health insurance for you and the people you love.

Why Was Covered California Created?

Our history began in 2010 with the passage of the federal Patient Protection and Affordable Care Act (ACA). Also known as “Obamacare,” this legislation provided a host of protections and rights surrounding health insurance. For example, under the ACA, insurance companies could no longer refuse coverage due to a preexisting condition, and they had to deliver free preventive care to everyone with a plan.

As part of the ACA, states could opt to create their own health insurance marketplace, giving residents both an easier way to shop for a health plan and see how much financial help they can get to pay for it. California was first in the nation to do this by creating Covered California.

Since that time, we have worked to champion better health for Californians and bridge gaps in health care access across the state. Every year, nearly 1.75 million people use our free service to get covered — and the vast majority get financial help to lower their health insurance costs.

Covered California is now the largest state-based health insurance marketplace in the country. Over the last decade, we’ve helped reduce the percentage of uninsured adults under the age of 65 from 19.4 percent to just 7.5 percent — well below the national average. Today, we continue to fight for Californians to keep health insurance costs low and access high.

How Does Covered California Work?

One of Covered California’s most important roles is connecting residents who qualify with financial help to lower the cost of health insurance. This financial help comes in the form of federal tax credits to help lower monthly premiums, and additional federal and state funds to help reduce copays and deductibles. Nine out of 10 people who enroll will get financial help — and the average person will save about $5,000 per year!

We also give people options when it comes to finding a plan. Californians can choose between different brand-name plans to find one that meets their health care needs. In 2024, that means more choice than ever. This year, 12 health insurance companies offer coverage across the state, and every single person enrolling has at least two companies to choose from.

Californians who don’t have affordable coverage through their job or another government program like Medi-Cal or Medicare can get a health plan with financial help through Covered California. In most cases you have to be a legal resident to sign up. However, if you’re not a legal resident, you can still apply for Medi-Cal through Covered California.

Remember, no matter how you get it, having health insurance is the law. The state of California requires all residents to get health insurance or face a tax penalty, unless they have a qualifying exemption.

Financial Help to Pay for Health Insurance

Nearly 90 percent of people who enroll in a health plan through us receive financial help that lowers the cost of their health insurance. In fact, roughly half of all enrollees could pay as little as $10 per month, with many paying $0 for their monthly premium.

Financial help to pay for health insurance comes in two forms: premium tax credits to cover some or all of your monthly payment and subsidies that further lower out-of-pocket expenses like deductibles or copays. It only takes a moment to see how affordable your coverage can be with our quick calculator.

Choosing a Health Plan

We offer high-quality plans from brand-name health insurance companies, including Kaiser Permanente, Anthem Blue Cross, Aetna and more. All plans offered through Covered California include essential health benefits like preventive care, emergency services, maternity and newborn care and prescription drugs. Rest assured you’ll never be turned away for a preexisting condition.

The differences in plans come down to metal tiers and categories.

• Metal tiers for health insurance are Bronze, Silver, Gold and Platinum. The tiers are separated by how the cost of health care is split between you and the insurance company. Bronze plans typically have the lowest monthly premium payments and the highest costs when you need care. On the other end of the spectrum, Platinum plans usually have the highest monthly premiums and the lowest costs in terms of care.

• Categories include HMO, PPO and EPO. These categories differ in price and flexibility. HMOs are usually less expensive and more restrictive, PPOs are pricier and more flexible, and EPOs are somewhere in between.

Through Covered California, you can get separate dental and vision coverage, as well.

When to Enroll

Usually, the time for everyone to buy, change or renew a health plan is during open enrollment, which runs from November 1 through January 31. Outside of open enrollment, you can get coverage when you experience a qualifying life event. Major life shifts — like getting married or losing your job and the health insurance that comes with it — qualify you for special enrollment, which usually allows for 60 days after the event to get covered or make a change.

How to Get Started

Take the next step toward a healthy future. Check to see if you qualify for financial help through Covered California’s quick calculator — from there, you can apply online and get free and confidential help if you have any questions.