Decline in Enrollment for Affordable Care Act Plans in North Bay

This year, the number of new residents in the North Bay enrolling in Affordable Care Act health plans dropped by 33 percent. This is probably linked to the recent end of federal assistance.

In California, the notable decrease in new enrollment in the Covered California insurance market was somewhat balanced by an increase in renewals. Overall, enrollment declined by 2.3 percent.

New registrants in Japan fell from 10,862 last year to 7,331 this year. However, those renewing their insurance—sometimes by opting for less expensive plans—increased from 52,363 to 54,452.

New enrollees typically include uninsured individuals signing up for a Covered California plan for the first time or those who haven’t enrolled in the past year.

The agency announced recently that the declines seen in new registrations and overall enrollment in North Bay align with the state’s decreases of 32 percent and 2.6 percent, respectively.

Jessica Altman, the executive director of Covered California, noted that this year’s enrollment trends were distinct for several reasons, particularly the loss of enhanced premium tax credits from the pandemic era that significantly reduced the cost of health insurance.

“Many people in California value their coverage, but they have had to compromise and switch to lower-tier plans,” Altman stated.

The insurance coverage period this year ran from November 1, 2025, to January 31, 2026.

The agency reported that the loss of tax credits resulted in fewer new registrations among Californians across all ethnic groups. The Latino community faced the steepest declines, with registrations down by 39 percent, while new registrations among Black residents decreased by 34 percent.

Interestingly, more than a third of new enrollees opted for a bronze plan in 2026, a rise from less than a quarter last year. Statewide, over 130,000 individuals switched to the more affordable Bronze plan this year.

To address the loss of federal tax subsidies, the state allocated $190 million from the Affordable Care Reserve Fund in 2026 for tax credits aimed at individuals earning up to 165 percent of the federal poverty level.

This means that individuals with annual incomes up to $23,475 and families of four earning up to $48,225 can maintain their monthly premiums at last year’s levels.

Officials from Covered California described this year’s enrollment as “robust,” as it reached historic levels in 2025. From 2024 to 2025, the number of people renewing their insurance across the state grew by 10.5 percent, totaling 1,633,793. Renewals increased by 3.6 percent this year.

The agency indicated that renewal rates for low-income individuals remained consistent with last year’s figures. However, the middle-income population, defined as those earning 400 percent of the federal poverty level, experienced a sharp drop in enrollment.

New applications in this group fell by a staggering 59 percent compared to the previous year, and the cancellation rate was 22 percent—the highest among all income categories.

Nearly half of Covered California’s enrollees, approximately 935,700 people, reside in Southern California, while about 20 percent are located in the Greater Bay Area.