California Cliff Calculator — 2026 ACA Subsidy

By Severance Calculator Editorial · Updated

California Marketplace: Covered California

California uses a state-based marketplace (SBM) called Covered California. California residents enroll at Covered California — not HealthCare.gov.

Medicaid in California: Medi-Cal

California expanded Medicaid under the ACA. Medi-Cal covers adults to 138% FPL.

State Subsidy Backfill

California State Premium Subsidy ($190M appropriated for 2026 via SB 67 / 2025 budget trailer) fully replaces lost enhanced federal PTC for households up to 150% FPL; partial replacement to 165% FPL. Does not soften the 400% FPL cliff.

2026 SLCSP Benchmark Premiums (California)

Statewide average monthly second-lowest-cost Silver plan (SLCSP) premiums by age. Actual premiums vary by rating area.

Age2130405060
Monthly SLCSP$380$431$485$678$1,031

2026 ACA Cliff Thresholds by Household Size (California)

MAGI above these amounts zeros out the federal Premium Tax Credit. FPL region: contiguous48.

Household size12345
400% FPL cliff$62,600$84,600$106,600$128,600$150,600

Key Facts: California ACA

California is the largest state-based marketplace (SBM) in the country. As healthinsurance.org confirms: 'California runs its own state-based health insurance Marketplace, called Covered California.' Covered California has approximately 1.8 million enrollees and is the only place California residents can obtain federal Premium Tax Credits.

California's most distinctive 2026 feature is the California State Premium Subsidy — the largest state appropriation for ACA backfill outside of New Mexico and Massachusetts. The Legislature appropriated $190M via SB 67 and the 2025 budget trailer bill. As healthinsurance.org explains: 'When the federal subsidy enhancements expired at the end of 2025, California's state subsidy program switched to a supplemental premium subsidy for applicants with household income up to 165% of the federal poverty level.' Full premium replacement applies for households at or below 150% FPL; partial replacement extends to 165% FPL. Importantly, this subsidy addresses the low-FPL affordability problem — it does not soften the 400% FPL cliff itself, which remains hard at $62,600 (HH=1).

Medi-Cal (California's Medicaid) covers adults to 138% FPL. Phase 4 of California's undocumented adult Medi-Cal expansion completed January 1, 2024, making California the first state to provide Medicaid coverage to all income-eligible residents regardless of immigration status (though federal Medicaid funds cannot be used for this population). Note: As of 2026, undocumented adult enrollment in this program has been subject to evolving state budget constraints.

Calculate your California ACA cliff

Inputs default to California; adjust to your household specifics. Cliff = $62,600 (HH=1) / $128,600 (HH=4).

Your situation

Member ages
self

Coverage

Income

You're under the cliff

100%138%200%300%400%

You are at 319% of the federal poverty level.

Annual PTC
$840
$70 / month
MAGI headroom before cliff
$12,600
until you hit 400% FPL

PTC dollar values use a state-level SLCSP estimate; verify your exact second-lowest-cost Silver plan on healthcare.gov for your zip.

Primary Sources

  1. healthinsurance.org — California Marketplace
    “California runs its own state-based health insurance Marketplace, called Covered California.”
  2. healthinsurance.org — California 2026 state subsidy
    “When the federal subsidy enhancements expired at the end of 2025, California's state subsidy program switched to a supplemental premium subsidy for applicants with household income up to 165% of the federal poverty level.”
  3. healthinsurance.org — California 2026 state subsidy switch
    “For 2026, California switched to a state-funded premium subsidy program.”

FAQ — California ACA Cliff

What is the 2026 ACA subsidy cliff in California?
For a household of 1, MAGI above $62,600 (400% of the 2025 FPL contiguous-48 base) zeros out the federal Premium Tax Credit under IRS Rev. Proc. 2025-25. Household of 4: $128,600. California's State Premium Subsidy ($190M) helps households at ≤165% FPL ($25,823 for HH=1) but does not soften the 400% FPL cliff itself.
What is California's State Premium Subsidy for 2026?
California appropriated $190M via SB 67 (2025 budget trailer bill) to backfill the expired ARPA-enhanced federal PTCs for low-income households. Full premium replacement applies for households earning up to 150% FPL; partial replacement extends through 165% FPL. This subsidy is available only through Covered California and does not provide any assistance above 400% FPL.
What is Covered California?
Covered California (coveredca.com) is California's state-based marketplace (SBM), the only place California residents can obtain federal Premium Tax Credits. It operates independently of HealthCare.gov — Californians do not enroll through the federal site. Open enrollment typically runs from November 1 through January 31 for Covered California (an extended window compared to the federal January 15 deadline).
Does California cover undocumented immigrants under Medi-Cal?
Yes — California completed Phase 4 of its Medi-Cal expansion to undocumented adults on January 1, 2024, making it the first state to provide Medicaid-like coverage to all income-eligible residents regardless of immigration status. This expansion is funded entirely with state funds (federal Medicaid cannot cover undocumented adults). Eligibility and enrollment remain subject to annual state budget appropriations.
How do I enroll in 2026 coverage in California?
California uses Covered California (coveredca.com) for marketplace enrollment — not HealthCare.gov. Open enrollment runs November 1 through January 31. Medi-Cal (Medicaid) accepts applications year-round at coveredca.com or benefitscal.com for adults at or below 138% FPL.
How is SLCSP calculated for California?
The 2026 statewide SLCSP age-band averages for California are: Age 21: $380/mo, Age 30: $431/mo, Age 40: $485/mo, Age 50: $678/mo, Age 60: $1,031/mo. These are statewide averages; Los Angeles vs. San Francisco vs. rural counties may differ by ±20-30%. The federal cliff distance (income vs. 400% FPL) is exact regardless of SLCSP precision.
Can I reduce my MAGI to stay below the 2026 cliff in California?
Yes — common strategies include maximizing HSA contributions, deductible IRA or SEP-IRA/Solo 401(k) contributions if self-employed, harvesting capital losses, and deferring Roth conversions. California's state subsidy helps only households below 165% FPL, so for households near the 400% FPL cliff ($62,600 for HH=1), staying below the federal cliff has full dollar impact.

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