Health Insurance Bills Double for Some Californians After Obamacare Subsidies End

Some Californians are facing steep health insurance premium increases after expanded Affordable Care Act (ACA), also known as Obamacare, subsidies were not extended.

According to a recent report cited by the article from the San Francisco Chronicle, expanded ACA premium subsidies ended on December 31st after the U.S. Congress failed to reach an agreement on an extension or replacement. As a result, monthly premiums for some enrollees could more than double. The California state government projected that 2026 average health insurance premiums could rise by 97%.

Analysts said middle-class self-employed workers and enrollees around retirement age would be hit hardest.

One man said his monthly premium increased from $532 to $1,296. Another woman said her Blue Shield plan costs $1,300 per month, even though it does not include vision exams or dental care.

Enrollees who received premium increase notices are seeking alternatives, but available options remain limited.

Experts warned that even when considering insurance outside the ACA, consumers must carefully review core coverage terms.

Short-term health insurance plans, typically used during temporary situations such as job changes or school enrollment, may appear similar to standard insurance because they include deductibles, copays, and provider networks. However, these plans do not meet ACA requirements.

While premiums are generally lower, coverage is often limited. Pregnancy, childbirth, and prescription drugs are frequently excluded. If a policyholder becomes ill after enrollment, renewal may be denied or coverage canceled.

In some states, including California, enrollment in short-term insurance plans is banned or restricted.

Limited-benefit plans also require caution. Indemnity plans pay a fixed amount for hospital stays or medical visits, which is often insufficient to cover actual medical costs.

Faith-based sharing plans, which use pooled member contributions to cover medical expenses, are not legally classified as insurance, and payments are not guaranteed.

Within ACA plans, options to lower monthly premiums include Bronze plans and catastrophic plans.

Bronze plans offer lower monthly premiums but carry high annual deductibles, averaging more than $7,500, which can be costly for enrollees who frequently use medical services.

Catastrophic plans are also available, primarily to protect against major accidents or serious illnesses such as cancer. Deductibles can reach $16,000 for individuals and $21,200 for families, creating heavy financial burdens for low-income households.

Consumers are advised to compare insurers and plan tiers carefully. Even within the same insurer, premiums can vary significantly by region and plan level. In some areas, Gold plans are cheaper than Silver plans. For self-employed individuals, having even one employee may make small-group insurance more favorable than an individual plan.

With the reduction in subsidies, income eligibility rules have become stricter again. In 2026, individuals earning more than $62,600 annually and married couples earning more than $84,600 will no longer qualify for subsidies.

For California residents, the deadline to enroll in health insurance through Covered California (coveredca.com) is January 31st, with coverage taking effect on February 1.

BY NAKI PARK [park.naki@koreadaily.com]