California medical insurance rates skyrocket affecting millions of people
Californians already struggling to afford day-to-day necessities will be hit even harder next year when a hefty increase in health insurance rates goes into effect.Covered California, the state’s health insurance marketplace, announced this month that its private health plans will see prices rise on average 9.9% in 2027 for the second straight year.This year, prices increased by 10.1%.Combined, it’s the steepest increase seen in the state marketplace in nearly a decade, the Santa Cruz Sentinel reported.According to Covered California, some regions of the state may see increases as large as 15% — particularly Mono, Inyo and Imperial counties.
Most health plans will see double digit percentage increases, with San Jose-based Valley Health Plan expecting a 20% jump.Covered California pointed to increased health care costs as one reason.But the state pinned some of the blame on President Donald Trump’s administration.“The federal government and this administration have made it more difficult for hard-working Americans to access high-quality health insurance at a price they can actually afford,” said Covered California Executive Director Jessica Altman.
“The fallout from these federal actions continues to reduce affordability and put health insurance out of reach for too many.”Specifically, Altman was referring to the loss of federal subsidies to help families pay premiums.Even then, 8% of the increase can be traced to rising healthcare spending and only 2% to federal policy changes, according to Covered California officials.State officials touted efforts to help ease the pain, such as expanding the state’s subsidy program from $190 million to $300 million.
They claimed 60% of enrollees will ultimately see no increase in their monthly premiums.Enrollment fell by about 170,000 people, or nearly 9%, from 1.94 million in April 2025 to 1.77 million in April 2026, Altman said.Any price increases next year could be worsened by a new healthcare tax that stat...