Patients across California are increasingly gravitating toward health insurance plans with higher deductibles as they seek to lower their monthly expenses. This shift comes as the deadline for 2026 health coverage approaches, with residents needing to make their decisions by December 31.
The impending expiration of federal subsidies that have made health insurance more affordable since 2021 has led to intensified discussions among lawmakers regarding the future of the Affordable Care Act. With Congress currently adjourned until the New Year, the uncertainty surrounding the renewal of these vital tax credits has left many customers bracing for higher premiums.
Jessica Altman, the Executive Director of Covered California, reported a noticeable drop in enrollment, with only 123,461 Californians signed up for 2026 coverage as of December 20, reflecting a 30% decrease compared to the previous year. Altman noted that individuals are opting for plans with lower monthly costs, which inherently come with higher deductibles and out-of-pocket expenses. “People believe that in order to afford coverage, they have to move into a plan with that type of structure,” she explained.
Santa Barbara County, in particular, is projected to face significant repercussions, as approximately 20,220 of the 22,160 individuals enrolled through Covered California rely on financial assistance for their premiums. Since the introduction of enhanced subsidies in 2021, health insurance enrollment in the county surged by 28%.
Currently, California residents pay an average monthly premium of around $150, but this is expected to double to approximately $300 as tax credits phase out, contingent upon individual income levels. Altman expressed concern that the expiration of these credits could lead some residents to forgo health coverage altogether. “That is a scary thing for people and for their own health and financial security,” she warned.
The ramifications of this shift could extend to the broader healthcare system. Patients may skip essential preventative care, which could intensify health issues that are otherwise manageable, inevitably leading to increased costs in the long run. Additionally, healthcare providers may experience reduced patient numbers, potentially resulting in the need to downsize their workforce or cut less profitable services.
Altman emphasized that these changes could have far-reaching effects on the healthcare infrastructure, stating, “It’ll be years before we really see the provider impact of these collective changes coming out of DC, but they can really reshape and stress our health care system.”
To subsidize coverage for January, residents must enroll by December 31, while the open enrollment period for the remainder of 2026 ends on January 31. For those interested in exploring various plan options and premium estimates, the shop and compare tool available at CoveredCA.com can assist consumers in making informed decisions. Additionally, Covered California provides a helpline at (800) 300-1506 for free assistance in selecting insurance plans.
As California navigates these significant changes in healthcare coverage, there is still hope that residents will find solutions that ensure their health and well-being are prioritized.