As Congress fails to extend Affordable Care Act (ACA) premium tax credits, Covered California enrollees are bracing for sharp premium hikes next year, with many Korean Americans worried they will no longer be able to afford coverage.
Since the new enrollment and renewal season began on the 1st, inquiries from Korean American enrollees have surged. James Oh, a Korean American in his 40s enrolled in a Bronze HMO plan, said his monthly payment for a family of three will rise from $270 to $400 in 2026. “Private insurance is far more expensive, so it’s a heavy burden,” he said.
A couple surnamed Kim, whose annual household income is $130,000, currently pays $509 per month for a Silver Plan covering themselves and their daughter. Their agent warned that if the tax credit ends, their premium could soar to $1,500 per month. By the ACA formula, such an increase is likely. Under the current subsidy, middle-income households earning up to 400% of the federal poverty level (FPL) pay roughly $500 monthly; without it, costs could nearly triple.
Steven Hwang, an agent at BridgeOne Insurance, said, “If federal support ends, a middle-income couple in their 50s could see Silver Plan premiums rise 30–40%, and the higher the income, the larger the jump.” Governor Gavin Newsom’s office also warned that without renewal of the credits, low-income Californians could see average monthly costs climb from $97 to $182.
According to the Kaiser Family Foundation (KFF), failure to extend the ACA tax credits would raise average premiums by 26%, affecting the 92% of Covered California enrollees currently receiving subsidies.
Ryan Lee, CEO of Unity Insurance, said middle-income families would be hit hardest, though low-income groups would still receive substantial assistance. “Even with penalties of $900 per adult and $450 per child for remaining uninsured, joining Covered California is still the better option,” he said.
Covered California is accepting applications through January 31 for uninsured residents aged 18 to 64 who are citizens or permanent residents. In Koreatown, enrollment assistance is available at Kheir Clinic (213-235-2500), Asian Americans Advancing Justice Southern California (800-867-3640), and the Covered California Korean Enrollment Center (2631 W Olympic Blvd).
BY HYOUNGJAE KIM [kim.ian@koreadaily.com]
