Californians Face Rising Health Insurance Premiums
Many middle-class Californians who depend on the state’s health insurance market are experiencing a significant rise in premiums. This comes as the enhanced federal subsidies, which were a lifeline during the pandemic, have now expired.
So far, the number of insured Californians has remained steady, according to state figures. However, there are concerns that this situation might soon change, especially as higher premium bills begin to arrive.
Jessica Altman, the executive director of Covered California, hinted that more individuals might drop their coverage as they see these increased costs in their mailboxes this month. She noted that more detailed enrollment data should be available come spring.
Despite the end of enhanced benefits on December 31, Altman stated that 92% of enrollees are still receiving government subsidies to help with their health insurance costs. Interestingly, nearly half of these individuals can access plans costing them less than $10 a month. Additionally, around 17% of Californians renewing their plans can maintain their current coverage without any premium payments.
There’s a deadline approaching for registering for the 2026 benefits, which is this Saturday. This will clarify the impacts of the expiration of enhanced ACA subsidies, often called Obamacare, on residents of California.
What has expired?
In 2021, Congress enacted a temporary boost in subsidies for ACA plans. This change also expanded eligibility to families with higher incomes. Previously, only individuals making under 400% of the federal poverty level could receive subsidies. The legislation removed this cap, limiting premiums for wealthier households to a maximum of 8.5% of their income.
Expected Changes in Costs for Covered California Enrollees
Individuals with incomes exceeding 400% of the federal poverty level will no longer be eligible for subsidies. Others who previously benefited may see reduced support as well. Moreover, California’s average premiums have surged by over 10.3% this year due to rising medical costs, adding extra strain on families.
Impact on a Typical Family
For instance, consider a married couple in Los Angeles with two children and an income of $90,000. Their net monthly premiums for a standard silver plan are expected to escalate from $414 last year to $699 this year. That’s a staggering 69% increase, translating to an additional $3,420 over the year.
Who Else Might Face Higher Costs?
Retirees under 65, anticipating enhanced subsidies would last, may find themselves particularly affected. Those with incomes above 400% of the federal poverty level could face steep increases in health insurance costs.
Current Enrollment Figures
As of January 17, 2026, there are 1,906,033 Californians enrolled, which is a slight decrease from last year’s 1,921,840 enrollees at the same time.
Who Uses Covered California?
Participants mostly include individuals who cannot access their employer’s health plans and aren’t eligible for Medi-Cal, California’s program for low-income residents. A study indicated that nearly half of those enrolled are small business owners, employees, or self-employed individuals, with many coming from various professions like real estate, farming, chiropractic, and music.
The Bigger Picture
Health spending has been consistently outpacing general inflation. Currently, individuals are averaging more than $15,000 a year on healthcare, comprising approximately 18% of the U.S. economy—a stark contrast to just 5% in 1960.
California’s Response to Rising Costs
The state is contributing $190 million this year to assist those earning up to 165% of the federal poverty line. This funding aims to help keep monthly premiums at 2025 levels for individuals earning $23,475 or less and families of four earning $48,225 or less.
How to Register
If you’re curious about your eligibility for financial aid or wish to explore insurance options, you can visit CoveredCA.com.
Consequences of Going Uninsured
For those opting to go without health insurance, the risks can be substantial. A serious illness or injury can result in overwhelming medical bills, and California law imposes fines of at least $900 per adult and $450 per child for lacking coverage.
