Covered CA faces big hurdles in 2026, says executive director
The holiday season usually brings a lot of light and joy, but for a majority of Americans, decisions in regards to healthcare in 2026 will also need to be made.
Affordable Care Act subsidies, or tax credits, that went into effect in 2021 as part of the American Rescue Plan Act are set to expire at the end of the year, meaning that healthcare premiums will go up for millions of Americans.
Here in California, people who do not receive healthcare through their employer rely on Covered California, a free service that helps you explore your options and find the plan that meets your needs. Executive Director Jessica Altman told the Business Times it is “a really challenging year” for the organization, as it navigates choices made by the current administration.
“As we sit here today, I don’t really have confidence that we’re going to see action from Congress. It could happen, but we have to assume that we are going to see an expiration of what we call the enhanced tax credits,” she said.
Covered California expects to lose about $2.5 billion from its budget if those enhanced tax credits expire, dropping its yearly budget from $12 billion to around $9.5 billion.
“That means the existing tax credits are still pretty generous, but again, some people are going to lose all their tax credits. It won’t be even the way it will be felt,” she said.
The state of California is kicking in $190 million to help some people not feel the increases as harshly as others, but those increases are coming across the board.
As such, Altman is telling people across the state to really look at their healthcare status for the upcoming year and be as proactive as possible.
“Know your situation right, understand what is happening, why it’s happening and know what it means for you and your family,” Altman said.
As of Dec. 10, more than 45,000 Californians have newly enrolled in health coverage through Covered California. Nearly 1.8 million current enrollees have renewed their plan for 2026, with 21% actively selecting their plan.
Altman stressed the importance of people knowing that we are still in an open enrollment period, meaning people seeking health insurance or want to take a look at making a chance can go to coveredca.com and shop.
“This is the window that anyone can come in, whether you lost health insurance last week or you’ve been uninsured for a decade, right now is the time to act,” she said, adding that the Covered California website is very accessible to those who need assistance in another language and more.
Across Santa Barbara, San Luis Obispo and Ventura Counties, there are about 90,000 people who are covered on Covered California and the vast majority of them are receiving some degree of tax credits.
“And for Santa Barbara and a certain degree of SLO, when you’re talking about this, it is one of the more expensive healthcare regions of the state. So when you’re talking about people paying full premiums, that is a much higher amount for someone making the same income in Santa Barbara than it is in Los Angeles,” Altman said.
The big goal for Covered California in 2026 is not to lose people who currently have coverage. As it stands, about 2.6 million Californians, or 6%, are — a number that has declined thanks to affordable health care entities like Covered California.
“I often say we’re going to get into every nook and cranny of the state and try to find the people that we can help connect to coverage. This year, we are as focused, if not more, on keeping the people covered who are covered today,” she said.
The reason is that communities that have a slew of uninsured folks tend to suffer more, whether it be hospitals closing or downsizing because there are not enough people coming to get help, to individuals rolling the dice every day instead of seeking support.
Altman added that she believes it affects small businesses to a certain extent as well. People who could safely leave their jobs, knowing they could secure affordable health insurance through entities like Covered California and start their own business, might be more reluctant to do so if the cost is that much more.
“It’s a huge impact,” she said.
email: [email protected]
