Affordable Care Act subsidies are due to expire at midnight, which could lead to considerable hikes in health insurance premiums, according to the analysis firm KFF. If these tax credits end—credits linked to the longest federal government shutdown in U.S. history, which just wrapped up—premiums could rise by an average of 114%. It seems those nearing retirement and individuals with higher incomes will feel the most significant effects. This situation unfolds as the government grapples with the potential for another shutdown, with funding from the last one set to last only until January.
How does this affect Covered California?
Covered California, the state’s health insurance marketplace created under the Affordable Care Act, serves over 1.9 million people who are uninsured due to employment issues. It provides various discounts on premiums for many beneficiaries. The open enrollment deadline for coverage starting in January is December 31st, although there’s still the opportunity to enroll for 2026 until January 31st.
For 2026, California has allocated $190 million to offset the shortfall from the lost Affordable Care Act credits. Earlier this month, it was reported that more than 364,000 students had enrolled with state support. The aid is intended to keep monthly premiums at 2025 levels for individuals making $23,475 or less and for families of four earning $48,225 or less.
According to Covered California, nearly 92% of enrollees receive some form of assistance, and about half qualify for insurance costing $10 or less. Still, nearly a quarter could access a silver plan at the same price next year, and 17% of current customers might not pay anything in premiums if they stick with their existing plans. However, Jessica Altman, the executive director of Covered California, mentioned that rising costs could potentially leave around 400,000 individuals without insurance.
For further details, you can visit CoveredCA.com.
