Los Angeles, January 9, 2026
Health insurance premiums for Californians enrolled in Covered California are expected to increase significantly in 2026 due to the expiration of enhanced federal subsidies. Many individuals could experience an average premium hike of 97%, nearly doubling their monthly costs. This change could lead to a substantial drop in enrollment, especially among middle-income earners who will no longer qualify for financial assistance. The state has implemented some measures to alleviate the financial burden, but concerns remain about the potential loss of coverage for hundreds of thousands of residents.
Health Insurance Premiums Set to Rise for Covered California Enrollees in 2026
Significant Premium Increases Loom for Californians
Los Angeles, California – Health insurance premiums for individuals enrolled in Covered California are set to rise dramatically in 2026, primarily due to the impending expiration of enhanced federal subsidies. Unless Congress renews these subsidies, many Californians could see their monthly premiums increase by an average of 97%, nearly doubling their current costs.
The enhanced federal subsidies were crucial during the COVID-19 pandemic, creating a more affordable landscape for health insurance. These subsidies will terminate on December 31, 2025, unless legislative action occurs. Middle-income earners, who previously did not qualify for any subsidies, could find themselves entirely cut off from financial assistance averaging $384 per month, which may lead to a considerable number opting out of health coverage entirely.
Consequences of Losing Subsidies
The expiration of these federal subsidies raises concerns about a potential drop in enrollment figures for Covered California. Officials worry that as many as 400,000 current enrollees might forgo their coverage or seek alternative health insurance options. This trend, if realized, could lead to a significant increase in the uninsured population in California, undermining the progress made in expanding healthcare access.
State Responses to Mitigate Impact
In anticipation of these challenges, California’s state government has proactively implemented measures to alleviate the financial burden on consumers. The state has dedicated additional funding towards its cost-sharing reduction program, aimed at decreasing out-of-pocket expenses for enrollees. However, these initiatives alone may not suffice to counterbalance the anticipated hikes in premiums from the cessation of federal support.
Open Enrollment: A Critical Window
The open enrollment season for 2026 coverage has already commenced, allowing Californians the opportunity to sign up, renew, or explore alternative health insurance plans through Covered California. This period, running from November 1, 2025, until January 31, 2026, is critical for consumers to reassess their insurance options and prepare for the potential financial impact resulting from subsidy alterations.
Understanding Covered California
Established under the Affordable Care Act, Covered California functions as the state’s health insurance marketplace, facilitating access to affordable health insurance plans for California residents. Recent years have seen impressive enrollment figures—close to 2 million Californians were enrolled as of early 2025. The forthcoming expiration of enhanced federal subsidies poses a substantial challenge to maintaining affordable healthcare coverage for this demographic.
Conclusion
The looming expiration of enhanced federal subsidies places considerable pressure on health insurance premiums for Covered California enrollees in 2026. While state efforts are underway to mitigate some financial impacts, the complete effects of these subsidy changes remain uncertain. Californians are encouraged to remain informed about potential shifts in policy and to thoroughly explore their options during the open enrollment period to maintain access to affordable health coverage.
FAQ
What are the enhanced federal subsidies?
The enhanced federal subsidies were introduced during the COVID-19 pandemic to make health insurance more affordable for many Americans. These subsidies are set to expire on December 31, 2025, unless Congress acts to extend them.
How will the expiration of these subsidies affect health insurance premiums?
If the enhanced subsidies expire, enrollees could face premium hikes averaging 97%, nearly doubling their current monthly costs.
What is Covered California doing to mitigate the impact?
California has allocated additional funds to its cost-sharing reduction program to help reduce out-of-pocket expenses for enrollees. However, these state-level efforts may not fully offset the potential premium increases resulting from the loss of federal subsidies.
When is the open enrollment period for 2026 coverage?
The open enrollment period for 2026 coverage began on November 1, 2025, and will continue through January 31, 2026. During this time, Californians can sign up for, renew, or shop for a new health insurance plan through Covered California.
How many Californians are currently enrolled in Covered California?
As of early 2025, nearly 2 million Californians are enrolled in Covered California.
Key Features
| Feature | Description |
|---|---|
| Enhanced Federal Subsidies | Introduced during the COVID-19 pandemic to make health insurance more affordable; set to expire on December 31, 2025. |
| Projected Premium Increases | Without subsidy extension, premiums could rise by an average of 97%, nearly doubling current costs. |
| State-Level Measures | California has allocated additional funds to its cost-sharing reduction program to help reduce out-of-pocket expenses for enrollees. |
| Open Enrollment Period | Runs from November 1, 2025, to January 31, 2026; Californians can sign up for, renew, or shop for a new health insurance plan through Covered California. |
| Current Enrollment | Nearly 2 million Californians are enrolled in Covered California as of early 2025. |
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