# California health insurance and Medi-Cal funding

> Live situation record from CLSTR: https://clstr.news/situations/california-health-insurance-and-medi-cal-funding
> Updated: 2026-10-11T13:24:39.000Z. Sources: 4. Developments: 2.

Covered California has released its standardized benefit designs for 2027, detailing changes to deductibles, copays, coinsurance, and out-of-pocket limits across Bronze, Silver, Gold, and Platinum tiers.

Concurrently, California Governor Gavin Newsom and Democratic lawmakers are supporting a revised health plan tax intended to address rising Medi-Cal costs, particularly following federal restrictions on how such taxes can be used to secure matching funds. The proposal aims to address the estimated $12.4 billion cost of providing health care to undocumented immigrants in 2025. 

This tax proposal has faced legal challenges, with a coalition of doctors and health insurers filing a lawsuit alleging the plan violates voter-approved limits in Proposition 35. Insurers have warned that the measure could increase annual costs for privately insured residents by approximately $100 per person.

## Timeline

### 2026-10-11: California proposes health plan tax to address rising Medi-Cal costs

California officials propose a revised health plan tax to cover rising Medi-Cal costs, a move insurers claim could increase private premiums by $400 for families annually.

2 sources. https://clstr.news/cluster/california-proposes-health-plan-tax-to-address-rising-medi-cal-costs

### 2026-09-25: Covered California announces 2027 standardized health plan benefits

Covered California has announced its 2027 standardized health plan benefits, detailing new deductibles and out-of-pocket limits for Bronze, Silver, Gold, and Platinum tiers.

2 sources. https://clstr.news/cluster/covered-california-announces-2027-standardized-health-plan-benefits

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Cite as: California health insurance and Medi-Cal funding. CLSTR, https://clstr.news/situations/california-health-insurance-and-medi-cal-funding