Covered California has announced its 2026 health plans and rates, projecting an initial average increase of 10.3 percent amid uncertainty over the federal premium tax credit extension.
According to Covered California, the preliminary 2026 health plan rates reflect an average 10.3 percent increase driven by higher healthcare and pharmacy costs and broader industry trends. If federal premium tax credits are not extended, approximately 1.7 million Californians could face a roughly 66 percent rise in net premiums. The state has allocated $190 million in subsidies for individuals earning between 150–165 percent of the federal poverty level to help cover costs. Final rates, pending state review and public input, will take effect on January 1, 2026.
“Skyrocketing health insurance premiums are the last thing Americans need right now,” said Covered California Executive Director Jessica Altman in a press release. She expressed hope that Congress would act to protect the healthcare of millions of Americans who rely on marketplace coverage, adding that they are hopeful lawmakers on both sides recognize the need to extend this essential lifeline for working families. Altman said that regardless of what happens, Covered California is committed to helping Californians access high-quality, affordable health insurance and encourages everyone to contact them to find a suitable plan.
In 2026, eleven health insurers will provide coverage across California, ensuring all residents have at least two plan options. Most Californians—92 percent—will have three or more carriers to choose from, while 75 percent will have four or more options. In Los Angeles County, rate changes will affect different regions: northeast enrollees can expect a rise of 10.5 percent with a 2.8 percent adjustment decrease affecting approximately 258,490 people; southwest enrollees will see a 10 percent increase with a 6.8 percent adjustment decrease impacting around 318,130 individuals.
Covered California serves as the state’s health insurance marketplace allowing residents to compare plans from major insurers while providing financial assistance to eligible individuals for reducing premiums. It also connects qualifying residents to low-cost or no-cost Medi-Cal coverage. The marketplace operates independently within the state government and is overseen by a five-member board appointed by the governor and the Legislature.
