Californians who get dental coverage through Covered California will see average rates go up by 6.2 percent in 2027. The increase comes as dental care costs keep climbing and more people are using services. For the hundreds of thousands enrolled, this means higher out-of-pocket expenses, even as the state marketplace tries to keep coverage affordable in a tough dental market.
As of March 2026, about 370,500 people had dental insurance through Covered California, paying an average of $27 a month. That's an 85 percent increase in dental plan participation since 2020, showing how much the marketplace has grown as a source for oral health coverage. Still, the new rate hike makes it clear that strong enrolment alone isn't enough to protect consumers from rising dental costs.
In 2027, CalPERS will introduce new dental plan options for state employees, with some existing plans automatically transitioning to new administrators or names.
State of California / CalHR
"We are proud to continue to offer a competitive marketplace that helps ensure affordable and equitable access for Californians seeking health and dental insurance," said Jessica Altman, Executive Director of Covered California. "Even in this era of rising costs, Covered California is striving to offer the highest-quality dental plans for the best value."
The setup for families stays the same: dental insurance for children is bundled with standard health benefits, while adults can buy optional family dental plans. These family plans are guaranteed issue, so no one can be denied coverage because of pre-existing oral health conditions. That's especially important for people with ongoing dental needs.
In 2027, there will be eight dental plans from five insurers: Anthem Blue Cross, Blue Shield of California, DentaQuest, Delta Dental of California, and Humana Insurance Company. After enrolling in a health plan, people can choose between dental HMO and PPO options, depending on what fits their needs and budget. For state employees, Delta Dental and MetLife will be the main dental insurers in 2027, with some plans switching administrators automatically unless members pick a different plan during open enrollment. Details on these changes are outlined in the CalHR 2027 benefits update.
Preventive and diagnostic dental care will still be included at no extra cost in all plans. Pediatric dental services for members under 19 remain part of every Covered California health plan, so families don't need to buy separate dental coverage for children. Adults, however, still need to opt in and pay for family dental coverage if they want more benefits. For 2027, CalHR says the annual maximum benefit for some dependents will rise from $1,500 to $2,000, and preventive care won't count toward the annual limit in several PPO plans. That change gives families a bit more value if they need comprehensive coverage.
In 2026, California implemented significant regulatory changes to dental coverage, including new rules for out-of-network dentist payments and enhanced disclosure requirements, reflecting a broader push to control dental spending statewide.
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Dr. Monica Soni, chief medical officer for Covered California, pointed out the wider health impact: "Good oral health is critical for overall wellness, and it can help maintain a healthy heart and lungs, manage and control diabetes, and even help increase the chances of positive pregnancy outcomes. It also helps us eat without pain, speak clearly and smile with confidence. The equitable access to dental care that Covered California offers is crucial in addressing health disparities and achieving whole-person care."
Covered California's special-enrollment period is still open for people who lose health insurance, get married, have a baby, or turn 26, with coverage starting the first day of the month after signing up. The main open-enrollment window for 2027 runs from November 1, 2026, through January 31, 2027, with a December 31 deadline for full-year coverage. Nearly 1.8 million current enrollees can renew or switch plans starting October 1, and all options are listed at CoveredCA.com.
The rate hike is a direct response to the financial pressures facing both insurers and consumers. While Covered California highlights its commitment to value and access, the reality is that Californians will pay more for the same dental coverage in 2027. Enrolment remains steady and plan choices are expanding, but affordable dental care is getting harder to maintain as costs keep rising. For those who rely on these plans, careful review and plan selection will matter more than ever as the next coverage year approaches.
