Federal Budget Stalemate Threatens Health Subsidies: Black Californians Could Face Steep Insurance Hikes

September 30, 2025

The article discusses how the expiration of enhanced premium tax credits (EPTCs) under the Affordable Care Act could drastically increase health insurance costs for millions of Americans if Congress fails to pass a budget or Continuing Resolution by September 30. This would particularly impact Californians, including African American households who saw a 53% enrollment increase in Covered California between 2020 and 2025, with some potentially facing premium hikes of up to 67%. Without congressional action to extend these subsidies, an estimated 4.

Who is affected

Millions of Americans who rely on Health Insurance Marketplaces and enhanced premium tax credits
24 million Americans dependent on Health Insurance Marketplaces
California residents, particularly African American households who saw a 53% enrollment increase in Covered California
Small business owners like Chelsea Baker who need affordable insurance for medical treatments
An estimated 4.2 million people who could lose health insurance without the subsidies
400,000 Californians who could drop their health plans according to Monica Sonii

What action is being taken

Congress is working to pass a budget or a Continuing Resolution before the September 30 deadline
Covered California officials are meeting with lawmakers to raise awareness about the importance of extending the subsidies
California has budgeted nearly $200 million to support Covered California and help maintain affordability
Health officials are urging Californians to prepare financially for possible premium increases
Jessica Altman, Executive Director of Covered California, is working to raise awareness among lawmakers

Why it matters

Without subsidies, health insurance premiums could rise by an average of 75% across states
In California, enrollees currently receive an average subsidy of $563 a month, lowering premiums from $698 to $135
African American enrollees could see costs rise by as much as 67%
The loss of affordable healthcare forces difficult financial choices for families (medication vs. food, housing, etc.)
California stands to lose $2.5 billion in federal funding for healthcare subsidies
People with serious medical conditions, like Chelsea Baker who needs $8,600 treatments every two weeks, depend on affordable insurance for life-saving care

What's next

If Congress passes a Continuing Resolution, subsidies will continue temporarily while negotiations for a long-term solution continue
If Congress fails to act, the subsidies will expire at the end of this year, with premium increases taking effect in 2026
Health officials recommend Californians prepare financially by saving extra money to maintain coverage if premiums increase
Republican members of Congress have introduced a bill to extend enhanced tax credits for one year, though its passage remains uncertain
State leaders will attempt to mitigate impacts but cannot fully replace lost federal dollars

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