Covered California has reported its first double-digit rate increase since 2018, primarily due to rising health care costs and the expiration of enhanced federal subsidies. This increase results from a general expectation of an 8% annual cost rise, with an additional 2% linked to expiring federal financial assistance. The expiring subsidies are crucial as they provided support during the COVID-19 pandemic. If Congress does not renew these subsidies, Californians could face a $2.1 billion loss in tax credits, significantly affecting affordability for consumers in the health insurance marketplace.
Covered California is facing its first double-digit rate increase since 2018, driven by rising health care costs, expiring federal subsidies, and policy uncertainty.
The expiration of enhanced federal subsidies has created significant pressure on affordability, with California risking a loss of $2.1 billion in tax credits for consumers.
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