Covered California Opens Enrollment; Warns of Premium Hikes If Tax Credits End

November 12, 2025

Covered California officials are sounding the alarm as a federal government shutdown threatens to eliminate subsidies that help nearly two million residents afford health insurance, potentially causing premiums to spike by 97% in 2026. The Biden-era enhanced tax credits, which expire December 31st without congressional action, were excluded from the recent federal budget bill during negotiations. While California has allocated $190 million in state funds to help lower-income residents, officials warn this cannot replace the scale of federal assistance, and approximately 400,000 enrollees could lose coverage entirely.

Who is affected

Nearly 2 million California residents who rely on federal tax credits for health insurance
Approximately 400,000 Covered California enrollees who could lose insurance entirely
Low- and middle-income earners facing premium increases
Households earning up to 150% of the federal poverty level (about $48,225 for a family of four)
Black Californians, who are more likely to have chronic conditions but less likely to have continuous coverage
Latino communities with high uninsured rates
Families of color already burdened by medical debt
Early retirees who don't yet qualify for Medicare
Low-income Californians also dealing with Medi-Cal redeterminations and CalFresh reductions

What action is being taken

Covered California has launched its 2026 open-enrollment campaign called "Connectors for Coverage"
Community events are being held across the state, including in Leimert Park (Los Angeles) and Sacramento
More than 14,000 certified navigators and agents are working in Black and Latino neighborhoods
Outreach is occurring at churches, cafés, and other community locations
State lawmakers have allocated $190 million to help households earning up to 150% of the federal poverty level
California is negotiating directly with insurers to keep costs lower than the national average
Open enrollment for 2026 is running through January 31, 2026

Why it matters

This situation threatens to reverse years of progress toward affordable healthcare access, particularly impacting health equity for communities of color. Black Californians face disproportionate risks because they experience higher rates of chronic health conditions while having lower rates of continuous coverage, making affordable insurance access a matter of survival. The potential loss of federal subsidies creates a crisis scenario where families currently paying around $300 monthly could see costs double to $600, potentially forcing hundreds of thousands to go uninsured. Combined with simultaneous Medi-Cal redeterminations and CalFresh reductions, this represents a "perfect storm" that could devastate low-income California families' ability to access necessary healthcare.

What's next

The Biden-era subsidies expire December 31 unless Congress acts to renew them
Congress needs to take action during ongoing negotiations to reopen the government and restore funding for premium tax credits
Open enrollment continues through January 31, 2026
Average premiums are expected to increase 10.3% in 2026 (or 97% if federal subsidies are not renewed)

Read full article from source: The San Diego Voice & Viewpoint