Covered California vs Healthcare.gov: What's the Difference?

The Simple Answer

Covered California and Healthcare.gov are both ACA (Obamacare) health insurance marketplaces, but they're run by different entities:

Bottom line: California chose to run its own marketplace for better local control, additional funding, and enhanced benefits.

What is Covered California?

Covered California is the official state health insurance marketplace created under the Affordable Care Act (ACA, also known as Obamacare). It's the only place California residents can:

• Shop for and compare qualified health plans
• Apply for income-based subsidies (premium tax credits)
• Get cost-sharing reductions to lower out-of-pocket costs
• Enroll in comprehensive ACA-compliant coverage

Covered California launched in 2013 and is one of the most successful state exchanges in the country, with over 1.8 million enrolled Californians.

Key Differences

Why California's Marketplace is Better

Covered California offers several advantages over Healthcare.gov:

1. Additional State Subsidies

California provides extra state subsidies on top of federal subsidies, making coverage even more affordable. Middle-income Californians who wouldn't qualify for help in federal marketplace states can get subsidies here.

2. No Subsidy Cliff

In Healthcare.gov states, subsidies cut off at 400-600% of Federal Poverty Level. In California, there's no upper income limit—even high earners can qualify for some subsidy help.

3. Longer Open Enrollment

Covered California's open enrollment runs until January 31, giving you an extra 2+ weeks compared to Healthcare.gov's January 15 deadline.

4. Better Customer Service

California-based customer service representatives understand state-specific programs like Medi-Cal and can provide more personalized support.

5. More Carrier Competition

California's large market attracts more insurance carriers, giving consumers better plan choices and more competitive pricing.

6. State Individual Mandate

California has its own individual mandate, meaning more people are insured and risk pools are healthier, which helps keep premiums stable.

Moving to California from Another State

If you're moving to California from a state that uses Healthcare.gov:

• Your Healthcare.gov coverage will end when you move to California
• Moving triggers a Special Enrollment Period—you can enroll immediately in Covered California
• You have 60 days from your move date to enroll
• You'll likely pay less thanks to California's additional state subsidies

How to Transition

1. Cancel your Healthcare.gov coverage effective the day you move
2. Enroll in Covered California within 60 days of moving
3. Request coverage to start the day after your old coverage ends
4. No gap in coverage if you time it correctly