We get it—between holiday shopping, year-end business reviews, and family gatherings, “health insurance” was probably at the bottom of your to-do list. But as we settle into the reality of 2026, there is one deadline you cannot afford to miss.
Covered California’s Open Enrollment period is still open, but only through January 31, 2026.
If you (or your employees) are currently uninsured or looking to switch plans, this is your final window to secure coverage for the remainder of the year. Here is why you need to log in or call us before the month ends.
1. The “California Mandate” is Still in Effect
California remains one of the few states that enforces an Individual Shared Responsibility Penalty. Simply put: if you can afford health insurance but choose not to buy it, you will likely pay a penalty when you file your state taxes.
For the 2026 tax year, penalties can be substantial—often starting around $900 per adult and $450 per child, or 2.5% of your gross household income, whichever is higher. For many families, the penalty is higher than the cost of a catastrophic “Bronze” plan. It makes far more financial sense to pay for protection than to pay a fine for nothing.
2. 2026 Rates Have Changed—And So Have Subsidies
You may have heard about shifts in federal funding and the “Subsidy Cliff.” While there has been uncertainty at the federal level regarding the Inflation Reduction Act subsidies, California has stepped up.
The state has allocated specific funds to help stabilize premiums for lower-and-middle-income families. However, this means the landscape is different than it was in 2025. If you let your plan auto-renew, you might be overpaying.
- Income Updates: If your income fluctuated in 2025, your subsidy eligibility for 2026 has changed. Updating this now ensures you aren’t hit with a claw-back at tax time next year.
- Plan Shopping: Insurance carriers have adjusted their networks and rates. The “cheapest” Silver plan last year may not be the cheapest this year. Active shopping is the only way to ensure you are getting the best value.
3. Key Deadlines
- Did you miss the December 31 cutoff? Don’t worry. You can still enroll now.
- Apply by January 31: Your coverage will begin on February 1, 2026.
- After January 31: Open Enrollment closes. Unless you have a Qualifying Life Event (like marriage, birth of a child, or loss of job-based coverage), you will be locked out of the market until 2027.
The Bottom Line
Health insurance protects your physical health and your financial assets. One unexpected trip to the ER can cost more than a year’s worth of premiums. With the state penalty looming for the uninsured, staying covered is a savvy business decision.Don’t navigate the 2026 changes alone. At TheBenefits.Guru, we can quickly run your numbers, compare the new 2026 plan rates, and ensure you aren’t leaving subsidy money on the table.