News Summary
California residents will see an average increase of 10.3% in health insurance premiums for 2026, marking the first double-digit hike since 2018. Contributing factors include rising healthcare costs, the expiration of federal subsidies, and approximately 1.7 million enrollees facing a potential 66% spike in their monthly premiums. As Congress did not fund enhanced premium tax credits, many may struggle with affordability. Open enrollment begins November 1, amid concerns that declines in enrollees could raise costs further.
California residents can expect an average increase of 10.3% in health insurance premiums for the year 2026, as announced by Covered California. This marks the first double-digit increase since 2018 and comes on the heels of a 7.9% increase implemented in 2025.
The impending rise in premiums is attributed to various factors including the escalation of healthcare costs, the looming expiration of enhanced federal subsidies, and significant uncertainties within the market. Covered California’s Director noted that inflation and the expiration of federal financial assistance are critical components driving this rise.
It is projected that approximately 1.7 million enrollees could witness a staggering 66% spike in their monthly premiums attributed to the discontinuation of enhanced premium tax credits originally enacted during the COVID-19 pandemic. Without this financial support, many individuals and families may find it increasingly difficult to afford health insurance coverage.
In a recent development, Congress did not include funding for these enhanced premium tax credits in President Donald Trump’s recent legislation, which directly impacts about 90% of those enrolled in the Affordable Care Act. If these credits are not renewed, California stands to lose an estimated $2.1 billion in federal assistance aimed at assisting consumers with their health insurance expenses.
Health insurance agents report that clients are likely to face higher premiums and diminished assistance, pushing many towards significant out-of-pocket costs. While state officials have allocated $190 million to support subsidies for low-income residents earning below 150% of the federal poverty level, experts warn that this funding will be insufficient to close the anticipated financial gap.
Research indicates that around 600,000 people may opt to drop their health coverage due to the increasing costs and loss of subsidies. This decline in enrollees could exacerbate premium hikes as the remaining pool becomes less healthy, thereby driving up prices further.
Factors contributing to rising costs include tariffs on medications, increasing medical device expenses, and the widespread use of high-cost pharmaceuticals. Nationally, it is estimated that premium increases may reach up to 20%, with California’s proposed increase being relatively more moderate at 10.3%.
In 2026, residents will have access to health plans from 11 insurers across the state, despite Aetna’s exit from the market, which will affect around 21,000 enrollees. Open enrollment for health insurance coverage is set to begin on November 1.
Experts caution that if younger and healthier individuals decide to leave the insurance pool, it could raise premiums for those who remain. The final rates for health insurance premiums will be determined later this year and will take effect on January 1, 2026.
Covered California emphasizes the urgency for Congress to extend enhanced premium tax credits to safeguard consumers against the detrimental effects of increasing premiums.
Deeper Dive: News & Info About This Topic
- Almanac News: Covered California Premium Increase
- San Francisco Chronicle: Covered California Premium Rise
- Gold Rush Cam: Covered California 2026 Rates
- ABC10: Premiums to Rise in 2026
- KIIS FM: Covered California Premiums
- Wikipedia: Health Care in California
- Google Search: Covered California 2026 Rates
- Google Scholar: Health Insurance Premiums California
- Encyclopedia Britannica: Health Care
- Google News: California Health Insurance Premiums
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
