Mendocino County residents could see steep health insurance hikes under Covered California
Individuals using Covered California are not provided health insurance by their employer. Many are self-employed and have no other access to health insurance. It's unclear how many
Premiums will go up if tax credits expire
Covered
Altman said that 2 million people statewide will be impacted with what she described as a double whammy of decreased tax credits and premiums rising because healthcare costs in general are going up.
Altman said that Covered California enrollees would pay an average of 97% more than what they already pay for health coverage if the tax credits expire, in tandem with premiums going up due to the cost of healthcare increasing. As a result, Altman estimated that up to 400,000 current members statewide could choose to disenroll due to affordability.
Altman explained what tax credits will look like for different single-household incomes.
"
"The average premium that someone in
"The impact on Covered California enrollees and marketplace enrollees nationally can't be understated," Altman said.
The state has stepped in to help, allocating
"We're going to use those [state] funds to try and mitigate affordability increases for our most vulnerable enrollees," Altman said. "We simply don't have enough state funds to fill the hole the federal government would be leaving."
Legal immigrants will also be impacted
A provision from the federal reconciliation bill, known officially as H.R. 1, dubbed the "One Big Beautiful Bill," that goes into effect in 2027 limits which immigrants in the country legally continue to be eligible for financial assistance. Only green card holders and certain immigrants from
Effective in 2028, another provision from H.R. 1 discontinues automatic renewal of coverage, which accounts for the annual renewal of 70% of those under Covered California.
Altman explained that every marketplace enrollee would need to go online to maintain eligibility. "[They] will have to take a proactive action … every year in order to stay enrolled," Altman said.
Another provision from H.R. 1 that takes effect in 2028 ends conditional eligibility. Those under Covered California must report their expected income of the next year for eligibility determination. Those who are unsure of their expected income or have an unstable income, such as someone looking for a job or an independent contractor whose income fluctuates, may be given coverage on the condition that within 90 days they work out their expected income. This will no longer be the case.
"In 2028 we will not be able to deliver any tax credit until all information is verified," Altman said. "So we will have to get that paperwork in [before] we can give you that tax credit."
Altman explained that this will likely create confusion.
"If someone is trying to find paperwork, or they just lost their job and don't even know what paperwork to give us — that happens all the time — they may have to choose between paying the full premium while they wait out their tax credit eligibility, which many people cannot afford to do, or forego coverage until their paperwork clears," Altman said.
Losing out on reimbursement funds could mean clinic closures
"Some clinics are going to have to close across
The post


EDITORIAL: Ending the shutdown and keeping health insurance affordable must trump partisan politics
North Dakota insurance commissioner says Congress must extend ACA premium tax credits
Advisor News
- Bill that could expand access to annuities headed to the House
- Private equity, crypto and the risks retirees can’t ignore
- Will Trump accounts lead to a financial boon? Experts differ on impact
- Helping clients up the impact of their charitable giving with a DAF
- 3 tax planning strategies under One Big Beautiful Bill
More Advisor NewsAnnuity News
- An Application for the Trademark “EMPOWER INVESTMENTS” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
- Bill that could expand access to annuities headed to the House
- LTC annuities and minimizing opportunity cost
- Venerable Announces Head of Flow Reinsurance
- 3 tax planning strategies under One Big Beautiful Bill
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- On the Move: Dec. 4, 2025
- Judge approves PHL Variable plan; could reduce benefits by up to $4.1B
- Seritage Growth Properties Makes $20 Million Loan Prepayment
- AM Best Revises Outlooks to Negative for Kansas City Life Insurance Company; Downgrades Credit Ratings of Grange Life Insurance Company; Revises Issuer Credit Rating Outlook to Negative for Old American Insurance Company
- AM Best Affirms Credit Ratings of Bao Minh Insurance Corporation
More Life Insurance News