What is Open Enrollment?

By Cost-U-Less | October 08, 2025

You are likely confused about Open Enrollment in 2025-2026. You might even find yourself asking, “What does open enrollment mean?” Open enrollment refers to the time that you can sign up for health insurance. When you sign up for health insurance during the open enrollment period, you cannot be denied coverage. Health insurance companies do not use underwriting during the open enrollment period.

Now that you know the answer to the question, “What is open enrollment,” learn more.

California Open Enrollment Dates

Open enrollment varies by state. In California, the ACA marketplace — known as Covered California — runs open enrollment for 2025–2026 from November 1, 2025, through January 31, 2026.

This open enrollment period is longer than the one mandated by the federal government, giving Californians extra time to sign up for health insurance.

If you want your insurance to be effective on January 1, 2026, you must apply by December 15, 2025.

If you purchase coverage after December 15, 2025 but by January 31, 2026, it will go into effect by February 1, 2026.

For official date confirmations, visit Covered California or HealthCare.gov.

Subsidies Available for Low-income Applicants

Low-income individuals and families who apply for insurance during the 2025–2026 open enrollment period might be eligible for cost-reducing subsidies. California continues to offer both federal and state subsidies that help lower the cost of monthly premiums.

Under current guidelines, individuals and families with earnings between 100% and 600% of the Federal Poverty Level (FPL) may qualify for some level of assistance.
That means that:

Individuals earning roughly $15,000–$90,000 a year may qualify.
Families of four earning roughly $30,000–$185,000 a year may also be eligible.

The exact amount of your subsidy depends on your income, family size, and the plan you choose.
To check your eligibility, use the Covered California Shop and Compare Tool or speak to a licensed insurance agent.

Penalty for No Health Insurance

While there is no longer a federal penalty, California maintains its own individual mandate to help fund state subsidies.
If you do not have qualifying health coverage in 2025, you may be subject to a state tax penalty unless you qualify for an exemption.

The penalty amount is based on your household income and size.
For many, it is similar to at least $900 per adult or $450 per dependent child, or 2.5% of household income, whichever is higher.
For current details, visit the Franchise Tax Board’s Health Coverage Penalty Estimator.

Preparing for Open Enrollment 2025-2026

It’s easy to prepare for open enrollment in 2025. You need to gather a few documents and some information before applying.

You will need:

Social Security numbers for every person who will be part of your plan.
Proof of income (such as recent tax returns or pay stubs).
Dates of birth for everyone applying.
Current health insurance details, if applicable.

Finally, decide what type of coverage you need. If you are unsure, a licensed health insurance agent can help you compare plans and determine which one best fits your needs and budget.

For California residents, these plans are available exclusively through Covered California.

What Is a Special Enrollment Period?

If you miss the open enrollment period, you might qualify for a special enrollment period (SEP).
You can enroll in health insurance outside the open enrollment period if you experience a qualifying life event that causes you to lose coverage.

Qualifying life events include:

Losing job-based insurance.
Moving to a new area.
Getting married or divorced.
Having or adopting a child.
Losing eligibility for a parent’s plan or when COBRA coverage expires.

You generally have 60 days from the qualifying event to enroll in a new plan through Covered California.

Applying for Health Insurance in California

Applying for health insurance is simple when you get help from a licensed insurance agent. Cost-U-Less helps people find affordable health insurance that includes the coverage they need. You will receive a customized quote based on your needs.

Living without health insurance is expensive and dangerous. You could end up with expensive medical bills or ignore health problems because you can’t afford to see a doctor. Avoid the hassle by calling Cost-U-Less at (800) 390-4071 today for a free California health insurance quote.