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Covered California Warns of 97% Premium Spike With ACA Tax Credits Set to Lapse

A House bill advanced without the extension, leaving a likely gap that state officials say would push hundreds of thousands off marketplace plans.

Overview

  • Covered California projects the average amount enrollees pay would jump about 97% if enhanced premium tax credits expire on Jan. 1, 2026.
  • Executive Director Jessica Altman says as many as 400,000 people could leave the exchange, which currently covers about 2 million Californians.
  • The House passed a health bill that omitted the extension, and with the session ending Thursday, a discharge petition with 218 signatures is unlikely to get a vote in time.
  • Community clinics warn they will see more uninsured patients and reduced preventive services, with leaders anticipating strain on budgets and care access.
  • Open enrollment runs through Jan. 31, 2026, with a Dec. 31 deadline for coverage that begins on Jan. 1.