California Governor Gavin Newsom warned that without continued federal aid, more than 1.7 million Covered California enrollees will face premium shocks starting in January 2026, with some plans expected to rise by as much as 388%.
The governor’s office estimated that average premiums could increase by 97% across Covered California plans. For instance, Anthem Blue Cross’s Premium Bronze HMO plan, currently priced at $307 per month, is projected to climb to $964 next year.
Low-income residents earning $62,600 or less annually could see their monthly premiums nearly double, from $97 to $182. For those aged 55 to 64, rates could rise from $186 to $365, while self-employed individuals are expected to face an average hike of $131.
Anthony Wright, executive director of Families USA, cautioned that delaying renewal of ACA subsidies could raise premiums by an average of 18% beginning November 1, warning that “real premiums could double,” potentially forcing up to 4 million people to lose health coverage.
Wright added that insurers have already priced 2026 plans under the assumption that subsidies will expire, fueling fears of a “premium hikes → enrollment drops → further hikes” cycle.
A recent report from the Brookings Institution noted that ending ACA’s Zero Premium policy—which allowed some low-income enrollees to pay no premiums—could immediately leave 400,000 Americans uninsured.
Democratic leaders, including Newsom, are urging Republicans to include healthcare funding in the 2025–2026 federal budget. Republicans, however, argue that Democrats should first pass a short-term spending bill to prevent a broader fiscal impasse.
Meanwhile, Politico reported that the prolonged federal government shutdown has already forced some hospitals to suspend Medicare’s Acute Hospital Care at Home program, which had provided funding for remote care at 330 hospitals over the past four years. With the program’s renewal now uncertain, many hospitals have halted participation.
BY HYOUNGJAE KIM [kim.ian@koreadaily.com]
