Covered California has announced that Americans could face significantly higher insurance costs in 2026 if health insurance tax credits are not renewed. This development could impact the Affordable Care Act marketplace in California, which currently serves nearly 2 million enrollees.
According to Covered California, both marketplace enrollees and insurance experts have highlighted the potential effects of losing enhanced premium tax credits, which play a crucial role in making coverage more affordable. Presently, over 24 million Americans benefit from these credits, including nearly 2 million enrollees within California’s Affordable Care Act marketplace. If the credits expire at the end of 2025 without Congressional intervention, an estimated 4.2 million Americans might lose their health insurance, and marketplace consumers nationwide could experience an average 75 percent increase in premiums. These credits facilitate access to coverage across diverse regions, from small towns to large urban areas.
“Skyrocketing health insurance premiums are the last thing Americans need right now,” said Jessica Altman, executive director of Covered California. Altman expressed hope that Congress would act to protect the healthcare of millions relying on marketplace coverage and recognized the need for bipartisan support to extend this essential lifeline for working families.
According to Covered California data, Los Angeles County has a combined total of 576,620 enrollees as of March 2025. Region 15, located in the northeast portion of the county, accounts for 258,490 enrollees, while Region 16 in the southwest portion comprises 318,130 enrollees.
Covered California serves as the state’s health insurance marketplace, enabling residents to compare plans from major insurers and access financial assistance to lower premiums based on income. It connects eligible individuals to low-cost or no-cost Medi-Cal coverage and offers support through approximately 11,000 enrollers statewide. The marketplace operates as an independent state agency overseen by a five-member board appointed by the governor and Legislature. Plans include essential health benefits such as annual wellness exams, mental health care, prescription drugs, hospitalization, maternity care, and cancer screenings with optional dental and vision coverage. Federal subsidies reduce monthly costs depending on household size and income to help consumers afford quality insurance.
