Covered CA's First Double-Digit Rate Hike in Nearly a Decade
9/11/2025 | 2mVideo has Closed Captions
Covered CA premiums will jump 10.3% next year as aid fades.
Covered CA premiums rise 10.3% next year, the first double-digit hike since 2018, driven by higher costs and expiring aid. Officials warn of a $2B loss in tax credits if Congress doesn’t act; the state set aside $190M to cushion low-income enrollees and estimates up to 600,000 could drop coverage.
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SoCal Matters is a local public television program presented by PBS SoCal
Covered CA's First Double-Digit Rate Hike in Nearly a Decade
9/11/2025 | 2mVideo has Closed Captions
Covered CA premiums rise 10.3% next year, the first double-digit hike since 2018, driven by higher costs and expiring aid. Officials warn of a $2B loss in tax credits if Congress doesn’t act; the state set aside $190M to cushion low-income enrollees and estimates up to 600,000 could drop coverage.
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Learn Moreabout PBS online sponsorshipCalifornians who get their health insurance through the state's marketplace will see premiums increase by an average of 10.3% next year.
Covered California officials recently announced the first double-digit rate increase since 2018.
Executive Director Jessica Altman said rising healthcare costs, expiring federal subsidies, and policy-driven market uncertainty together are fueling the hike.
In recent years, insurers have expected healthcare costs to rise by about 8% each year.
That makes up the bulk of next year's increase.
About 2% of the rate increase in the state's Affordable Care Act marketplace is based on federal financial assistance that expires at the end of the year.
President Donald Trump's signature spending and tax reform bill, the One Big Beautiful Bill Act, left out funding for enhanced premium tax credits used by more than 90% of Affordable Care Act enrollees nationwide.
Congress enacted these subsidies during the COVID-19 pandemic to ensure people had health insurance.
Since then, Affordable Care Act enrollment has nearly doubled nationwide, from 12 million to 24 million people.
If Congress does not re-up the subsidies in September, California will lose more than $2 billion in enhanced tax credits for consumers.
State officials recently took steps to ease the potential loss of federal subsidies for the lowest-income Covered California members.
Moving on to Covered California budget overview-- -[crosstalk] -The state will spend $190 million to maintain subsidies for individuals earning about $23,000 per year or families of four earning about $48,000 per year.
Still, that investment is far short of the $2 billion the state stands to lose.
Covered California estimates that 600,000 people could drop coverage as a result of lost subsidies and rising costs.
For CalMatters, I'm Kristen Hwang.
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SoCal Matters is a local public television program presented by PBS SoCal