Covered California has announced that Americans could face significantly higher insurance costs in 2026 if health insurance tax credits are not renewed. This potential change would impact the Affordable Care Act marketplace in California, which currently serves nearly 2 million enrollees.
According to Covered California, marketplace enrollees and insurance experts have highlighted the potential effects of losing enhanced premium tax credits, which help make coverage more affordable. Presently, over 24 million Americans benefit from these credits, including nearly 2 million enrollees in California’s Affordable Care Act marketplace. If the credits expire at the end of 2025 without Congressional action, an estimated 4.2 million Americans could lose health insurance, and marketplace consumers nationwide might experience an average 75 percent increase in premiums. The credits support access to coverage from small towns to large urban areas across the country.
“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 of Americans who rely on marketplace coverage, and we’re hopeful that lawmakers on both sides of the aisle recognize the need to extend this essential lifeline for working families.”
Covered California reports that the Inland Empire region, encompassing Riverside and San Bernardino Counties, has a total of 186,850 enrollees as of March 2025, with roughly half of the enrollees in each county.
Covered California functions as the state’s health insurance marketplace, allowing residents to compare plans from major insurers and access financial assistance to lower premiums based on income. It connects eligible individuals to low-cost or no-cost Medi-Cal coverage and offers support through 11,000 enrollers statewide. The marketplace is an independent state agency overseen by a five-member board appointed by the governor and Legislature. Plans include essential health benefits such as annual wellness exams, mental health care, prescription drugs, hospitalization, maternity care, and cancer screenings, with optional dental and vision coverage. Federal subsidies reduce monthly costs depending on household size and income, aiding consumers in affording quality insurance.
