Covered California has unveiled its health plans and rates for 2026, reporting a preliminary weighted average rate increase of 10.3%.
This rise could be mitigated if Congress extends the federal enhanced premium tax credits that have reduced costs and boosted enrollment over the past four years.
Jessica Altman, executive director of Covered California, emphasized the urgency of congressional action.
“Skyrocketing health insurance premiums are the last thing Americans need right now,” Altman said. She expressed hope that lawmakers would recognize the necessity of extending this support for working families.
The proposed rate changes stem from increasing health care costs and the potential expiration of federal enhanced premium tax credits at the end of 2025. Without an extension, 1.7 million enrollees in California could face an average net premium increase of 66%.
Despite these challenges, Covered California remains strong, with record-high enrollment and active negotiations with insurers to ensure value for consumers. California’s efforts to maintain affordability include state-funded assistance and a significantly lower average rate increase compared to the national average of 20%.
Looking ahead, California is taking further steps to protect its most vulnerable residents from rising costs. Gov. Gavin Newsom and the state legislature have allocated $190 million for 2026 to provide state subsidies for those earning up to 150% of the federal poverty level. This funding aims to keep premiums stable for low-income enrollees.
Altman praised California’s proactive measures in maintaining affordable health insurance.
“Even in this chaotic federal environment, California is leading the way to keep marketplace health insurance affordable, and we’re so incredibly proud of the progress we’ve made covering nearly 2 million Californians in 2025,” Altman said.
In 2026, 11 health insurance companies will offer plans across California, providing consumers with multiple choices. However, Aetna will exit the marketplace, affecting nearly 21,000 enrollees who will need to select a new plan.
Covered California’s commitment to affordability and access remains steadfast, demonstrating leadership in advancing the goals of the Affordable Care Act and protecting its residents.
