News Summary
California is set to experience a health insurance premium increase of 10.3% for 2026, marking the first double-digit rise since 2018. This follows a 7.9% increase in 2025 and is driven by higher healthcare costs and lapsed federal subsidies from the COVID-19 pandemic. Experts warn that around 1.7 million Californians could see costs soar, especially if federal premium tax credits are not renewed. Though Covered California will offer plans from 11 insurers, growing affordability concerns highlight the urgent need for legislative action to protect consumers.
California is facing an average health insurance premium increase of 10.3% for the year 2026, marking the first double-digit hike since 2018. This rise follows an increase of 7.9% in 2025 and is largely attributed to escalating healthcare costs and the expiration of enhanced federal subsidies that were implemented during the COVID-19 pandemic.
The Director of Covered California, the state’s health insurance marketplace, pointed out that inflation and the lapse of federal financial assistance are significant factors contributing to this rise in premiums. The expiration of enhanced premium tax credits, which benefitted enrollees during the pandemic, could lead to an additional 66% rise in monthly premiums for approximately 1.7 million Californians.
This impending premium increase is particularly pressing due to Congress’s failure to renew funding for the enhanced premium tax credits in a recent legislative proposal. Approximately 90% of those utilizing the Affordable Care Act insurance plans may experience adverse effects if these subsidies are not renewed, which could potentially result in California losing about $2.1 billion in federal aid meant for consumers.
Health insurance professionals noted the financial burdens many clients will face as they cope with higher premiums and diminishing assistance. State officials have allocated $190 million to maintain subsidies for low-income residents earning up to 150% of the federal poverty level, but experts project that this will be insufficient to cover the anticipated shortfall. As a consequence, around 600,000 individuals might consider dropping their health coverage altogether due to the mounting costs, which could subsequently exacerbate premium rates by creating a less healthy enrollee pool.
Covered California’s assessment indicates that various factors, including drug tariffs, rising medical device costs, and the prevalence of costly pharmaceuticals, are expected to affect premium costs statewide. Comparatively, the national average premium increase is projected to be about 20%, whereas California’s is set at 10.3%.
Despite the challenges, Covered California will have 11 insurers offering plans statewide in 2026, although Aetna’s exit from the market will affect approximately 21,000 enrollees. Open enrollment for new health insurance coverage is scheduled to begin on November 1, creating an important window for consumers to review their options.
Health experts warn that if younger and healthier individuals withdraw from the insurance marketplace in reaction to higher costs, premiums may increase even further for those who remain. The final rates are expected to be confirmed later this year and will take effect on January 1, 2026.
In light of these developments, the urgency for Congress to address the enhanced premium tax credits has become increasingly critical to protect consumers and maintain affordability in California’s health insurance market.
Deeper Dive: News & Info About This Topic
- Almanac News: Covered California Health Insurance Premiums
- San Francisco Chronicle: Covered California Premium Increase
- ABC10: Covered California Premiums to Rise in 2026
- Google Search: California Health Insurance Premiums Increase 2026
- Wikipedia: Health Insurance in the United States
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
