If you get health insurance through Covered California, it’s important to know that some of the extra help many people have been getting to lower their monthly premiums is set to expire at the end of 2025.
Here’s what’s happening:
Over the past few years, extra federal funds have made health plans more affordable for many Californians. These bigger subsidies were part of a temporary program and are scheduled to end on December 31, 2025 — unless new action is taken to extend them.
What does this mean for you?
- If the extra help goes away, some people could see their monthly premiums go up by about $80–$100 on average.
- Some middle-income families might see even bigger increases.
- A small number of people may decide to drop coverage because it could become too expensive.
Will California do anything about it?
Right now, there’s no new state plan to fully replace these subsidies, but there are discussions happening. California has tried to make coverage more affordable in the past, so we’ll have to wait and see if any new help becomes available.
What should you do?
- Keep an eye on this topic in the news as we get closer to the end of 2025.
- During open enrollment later this year, review your plan and costs carefully.
- Talk to a trusted agent or Covered California rep to make sure you’re getting all the help you qualify for.
The bottom line:
If nothing changes, some people will pay more for Covered California health insurance starting in 2026. Planning ahead and staying informed will help you avoid surprises and find the best options for your budget.
If you’d like help understanding your options or planning ahead, feel free to reach out — I’m always here to help.