What is the purpose of Covered California?
Asked by: Dalton Kub | Last update: November 1, 2025Score: 4.6/5 (13 votes)
What is the point of Covered California?
Covered California is a free service from the state that helps people get and pay for brand-name, quality health insurance. In fact, we've already helped millions of Callifornians get covered and 90% of enrollees receive financial help.
What is the difference between Covered California and regular insurance?
Medi-Cal offers low-cost or free health insurance to eligible Californian residents with limited incomes. Covered California is the state's health insurance marketplace where Californians can shop for health plans and access financial help if they qualify for it.
What is the highest income to qualify for Covered California?
In 2024, an individual in a one-person household is eligible for some degree of Covered California subsidies if they earn up to $33,975 Meanwhile, that limit rises to $69,375 for a household size of 4. These numbers refer to your Adjusted Gross Income (AGI) as found on line 11 of your Form 1040.
Do I have to put Covered California on my taxes?
If you had a plan through Covered California at any point during 2023, you must file your federal tax return and "reconcile” your premium tax credit.
What is Covered California?
Do I have to pay back the Covered California subsidy?
If your income is more than what you told us on your application, you may have to repay some or all of the advanced premium tax credits that you got.
How will Covered California affect my tax return online?
If you receive a tax credit through Covered California, you must file taxes for that benefit year. You will receive a 1095-A form, which shows how much Covered California paid to your insurance company to help with the cost of your health coverage. You will use the information on your 1095-A to fill out IRS Form 8962.
How much does Covered California cost per month?
Apply for health insurance by Jan. 31 — and pay as little as $10 per month if you qualify. How many need coverage? Your Estimate $63 per month for a Silver plan. Bronze as low as $0.
How can I avoid paying back my premium tax credit?
Report any changes in your income during the year to the Marketplace, so your credit can be adjusted and you can avoid any significant repayments at the end of the year.
Who is not eligible for Covered California?
Who is Not Eligible for Covered California? If you are not lawfully present in California, you are not eligible for a Covered California plan. However, you can still apply through Covered California to find out if you are eligible for Medi-Cal or to find coverage for family members who are lawfully present.
Do I need to apply for Covered California every year?
Medi-Cal members must renew their coverage each year to keep their health care benefits. For most members, coverage is renewed automatically. Sometimes the county will send you a renewal form that you must review and return, along with any additional required information.
Does Covered California cover colonoscopy?
The Bronze plans (like all of the plans) includes free preventative care such as annual physicals (including mammograms and colonoscopies), well-baby checkups, and immunizations. Basic pediatric vision and dental preventative services are included at no charge for children 18 and under.
Why is my Covered California premium so high?
The rate change can be attributed to many factors, including a continued rise in health care use, increases in pharmacy expenditures, the rising cost of care, labor shortages and other issues affecting the health care industry.
Can rich people use Covered California?
Even if your income is too high to get help paying for a health plan, you can still buy a plan through Covered California. You can also sign up for a plan on your own. You can apply through the insurance company directly, through an insurance agent or broker, or through another online health insurance marketplace.
Does Covered California check your income?
This is called “income verification.” Covered California does this by electronically asking the Internal Revenue Service (IRS) database and other databases if what you reported is the same as what they have on file. The IRS will not share your personal tax data with Covered California.
What is the cheapest health insurance in California?
Affordable health insurance in California for 2025
L.A. Care has the cheapest rates in California, and it's the cheapest health insurance company for about a quarter of the people in California. But you can only get L.A. Care if you live in Los Angeles County.
What is the income limit for Covered California?
Note that free health insurance plans are available, as California's low-income cutoffs are below $47,520 a year. Families of four who earn wages below the median household income in California — $97,200 per year — qualify for government assistance based on their income.
What disqualifies you from the premium tax credit?
For tax years other than 2021 and 2022, if your household income on your tax return is more than 400 percent of the federal poverty line for your family size, you are not allowed a premium tax credit and will have to repay all of the advance credit payments made on behalf of you and your tax family members.
Do I have to pay back Covered California?
And if the government determines that you received too much APTC (because your income changed and you didn't tell Covered California), you may have to pay back some of the money you received. This is called “reconciliation.”
Is it better to go through Covered California?
Covered California is the best option for getting an individual plan. There are four big reasons it is best to use Covered California: It's the only place where you can get federal or state help paying for your premiums and other health expenses.
How much does the average person pay for health insurance in California?
The Cost of Health Insurance in California
The average cost of health insurance in the state of California is $6,888 per person based on the most recently published data. For a family of four, this translates to $27,550. This is $94 per person below the national average for health insurance coverage.
Why do I owe taxes because of health insurance?
Owe taxes if you used more of the premium tax credit than you qualified for in 2024. You'll have to report the excess amount on your 2024 tax return by filing Form 8962, Premium Tax Credit (PDF, 115 KB). Find instructions for Form 8962 (PDF, 348 KB).
Do you have to enroll in Covered California every year?
If you do not renew your insurance, Covered California will automatically re-enroll you or members of your household into your current private health insurance plan by December 15, <current year>. We will renew your insurance using the most recent information you gave us.
How do I remove income from Covered California?
To report changes, call Covered California at (800) 300-1506 or sign in to your online account. You can also find a Licensed Insurance Agent, Certified Enrollment Counselor or county eligibility worker who can provide free assistance in your area.