Covered California 2027: Open Enrollment Guide for LA Founders

Covered California's open enrollment for 2027 coverage starts Sunday, November 1, and for a lot of Los Angeles founders, freelancers and solo operators it is one of the biggest money decisions of the year. If you work for yourself, there is no HR department picking a plan for you, and the rules on financial help have changed in ways that hit self-employed households harder than most.

This article is general information, not tax, legal or insurance advice. Run your own numbers, ideally with a certified enroller or tax professional.

The dates that matter

According to Covered California, open enrollment runs from November 1, 2026, through January 31, 2027. Sign up by December 31 and your plan starts January 1. Sign up in January and coverage begins February 1. Current members have been able to renew or switch since October 1.

Miss the window and you generally need a qualifying life event, such as losing other coverage or getting married, to enroll before next fall.

What changed for 2027

Rates are up. Covered California announced a preliminary weighted average rate increase of 9.9% for 2027, with actual changes varying widely by plan and region. The agency also said that, thanks to federal tax credits and California's own subsidy, 60% of enrollees would see no increase in their monthly premium and 26% would remain eligible for a $0 premium without changing plans. Its examples include a Los Angeles couple earning around $38,000 who could get a Bronze plan for $0 a month.

The subsidy cliff is back. The enhanced federal premium tax credits created in 2021 expired at the end of 2025. California's budget set aside $300 million for a 2027 state premium subsidy, but it is aimed at households at or below 200% of the federal poverty level. Above that, standard federal rules apply. And on Covered California's 2027 eligibility chart, households above 400% of the poverty level, about $63,840 for a single person or $132,000 for a family of four, are not eligible for the federal premium tax credit at all.

For a profitable solo consultant, that line can mean the difference between real monthly help and full price.

Why self-employed income is tricky

Covered California says what you pay depends on your estimated net income for the year you will be covered, not last year's. That is hard to predict when revenue arrives in lumps.

The financial help you receive during the year is an advance on a tax credit. If you earn more than you estimated, you may have to pay some or all of it back when you file; if you earn less, you could get money back. Covered California recommends updating your account whenever your income outlook changes.

A few habits that tend to help:

• Estimate net, not gross. Start from expected revenue, subtract realistic business expenses, and be conservative about deals that have not closed.
• Revisit quarterly. If a big contract lands in spring, update your estimate then instead of discovering the difference at tax time.
• Ask about income near the cliff. If your projected income sits close to 400% of the poverty level, ask your tax professional how timing of income and deductible contributions, such as retirement plan contributions, could affect your eligibility. Do not guess.

Solo or small team?

Covered California's individual marketplace is designed for people who work for themselves without staff. If you have one or more employees other than a spouse, family member or owner, the agency points you to Covered California for Small Business, its group program. That is a different decision with different contribution and participation rules, and unlike individual coverage, group plans can generally be set up outside the November-to-January window.

Shop the network, not just the premium

For 2027, Covered California notes that Molina Healthcare will not offer plans in northeast Los Angeles County or Orange County, so some members will need to pick a new carrier. Even if your plan is not leaving, compare deductibles, out-of-pocket maximums and, above all, whether your doctors and nearby hospitals are in network.

Two tax points to keep in mind

California has its own coverage mandate. The Franchise Tax Board says residents without qualifying coverage and without an exemption owe a penalty on their state return. For 2025, it was $950 per adult and $475 per dependent child, or 2.5% of income above the filing threshold, whichever is higher.

Premiums may be deductible. Self-employed people who pay their own health insurance may qualify for the federal self-employed health insurance deduction, figured on IRS Form 7206. Eligibility rules apply, so confirm with your preparer.

A short to-do list for November

1. Project your 2027 net business income, with a low and a high case.
2. Log in to CoveredCA.com, update your income and household details, and compare at least three plans.
3. Check that your doctors, prescriptions and preferred hospitals are covered.
4. Enroll by December 31 if you want coverage on January 1.
5. Put a quarterly reminder on your calendar to update your income estimate.

Covered California also offers free help from certified enrollers by phone and online, which can save a busy founder real time.