Health insurance premiums for Californians purchasing coverage through Covered California are expected to rise by an average of 10.3% in 2026, according to the state’s marketplace. This increase marks a sharp rise from the 7.9% hike projected for 2025 and is primarily driven by rising medical and prescription drug costs.
However, the actual increase could be even higher if Congress allows enhanced federal subsidies to expire at the end of 2025. Since 2021, these federal subsidies have helped lower premiums for millions of Americans.
If lawmakers do not act to extend the subsidies, the average Covered California enrollee could see premiums jump by as much as 66%, impacting approximately 1.7 million residents in California alone.
“Skyrocketing health insurance premiums are the last thing Americans need right now,” said Jessica Altman, Executive Director of Covered California. “There is still time for Congress to act and protect the health care of millions.”
Covered California, the state’s Affordable Care Act marketplace, allows residents to compare and purchase health plans, often with financial assistance. In response to these expected increases, California has allocated $190 million in state subsidies for 2026 to help mitigate the impact on its lowest-income residents.
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