SACRAMENTO:- Without immediate action from Congress to extend key funding as part of a government shutdown deal, Californians enrolled in the state’s health care marketplace, Covered California, will see their monthly health insurance bills nearly double beginning in January — and in some cases more than triple, Governor Newsom warned today.
As a result of President Donald Trump’s recently passed HR 1 (the “Big Beautiful Bill”), Congress made devastating cuts to health care, and failed to extend tax credits for all Affordable Care Act (ACA) enrollees to fund tax breaks largely benefiting billionaires. If Congress does not restore these tax credits, consumers with coverage through Covered California will see premiums jump by an average of 97 percent, nearly doubling overnight. Democrats in Congress have agreed to fund the government with these tax credits included, but Republicans continue to block the deal.
“Increasing out-of-pocket health care costs puts coverage out of reach for millions of Californians and others across the nation,” said California Health and Human Services Secretary Kim Johnson. “This threatens affordability and will force many individuals and families to lose their health coverage altogether. Without federal action, the health of our communities is at risk.”
An example of an individual premium cost increasing across the country next year
Trump shutdown tied to health care funding
At midnight on October 1, the federal government began shutting down after Republicans in Congress failed to work with Democrats to extend funding. Democrats have proposed a continuing resolution to fund the government through October 31 and extend health‑insurance tax credits, but Republicans blocked the measure, which fell short of the 60‑vote threshold. Without renewal of these credits, ACA enrollees will see their costs skyrocket at the start of next year.
Deadly for Californians
If Congress does not immediately extend the tax credits as part of a government shutdown deal, Covered California enrollees will face unaffordable premium hikes in three months, beginning in January 2026. On average, premiums are expected to increase by 97 percent, effectively doubling overnight. For some, costs will more than triple.
Key impacts include:
Premiums nearly double: Covered California enrollees will see a 97% increase in monthly premiums on average.
Low-income Californians hit hardest: Individuals making less than $62,600 will see premiums rise from $97 to $182 per month.
Older Californians impacted: Adults aged 55–64 will see monthly premiums climb from $186 to $365.
Self-employed Californians: Nearly 500,000 independent workers will face an average increase of $131 per month.
Communities of color disproportionately affected: Premiums for Latino Californians would rise by 122%, for Asian and Pacific Islander Californians by 112%, and for Black Californians by 106%.
Middle-class families lose big savings: More than 160,000 Californians making over $62,600 currently save an average of $502 per month thanks to health insurance tax credits – savings that would disappear.
Covered California reached record enrollment this year, with nearly 2 million Californians signing up for coverage.
Without the enhanced premium tax credits, that progress is at risk, threatening to reverse historic gains in reducing California’s uninsured rate.
Governor Newsom is calling for immediate action from Congress to extend this funding and end the government shutdown.