Thousands of Californians brace for higher medical insurance costs

2026 is here, and it brings a big jump in health-insurance premiums for almost 90% of the 1.9 million people on CoveredCA plans, now that the COVID-era enhanced subsidies to help pay those premiums have expired. The state has allocated $190 million to help people afford their premiums, but that will only shield the lowest-income families.

Anne Sunderland, senior communications officer for the California Health Care Foundation, said many middle-income families on CoveredCA will see premiums rise by hundreds or even thousands of dollars a month.

“Think of an individual making more than, say, $63,000 a year, or a family of four earning more than $130,000,” she explained. “They’re returning to the days where they got no federal subsidies. Those are the folks who might see their premiums double, or sometimes even more than double.”

CoveredCA estimates that hundreds of thousands of residents will not be able to afford the increases and will drop coverage altogether. This affects everyone, as hospitals are expected to raise prices to cover the costs of more uninsured people who end up in the hospital Emergency Department.

How this happened

Last summer, Republicans in Congress decided not to extend the subsidies while slashing Medicaid and SNAP benefits as part of what was known as the “One Big Beautiful Bill Act.” They opted to use the savings for immigration enforcement and extending tax cuts to wealthy families and corporations.

Sunderland said for those facing hefty premium hikes, the most important thing is to call CoveredCA or talk with a certified enrollment counselor.

“Everyone’s situation is different, and you want to explore all your options, including all of the federal or state assistance you may qualify for,” she continued. “So, be educated about your choices so you can make the right one for your family.”

People still have time to sign up for a plan on the CoveredCA marketplace – open enrollment ends on January 31.