BAKERSFIELD, Calif. (KERO) — The expiration of enhanced federal tax credits under the Affordable Care Act could impact an estimated 1.9 million Californians, according to Covered California, the state’s health insurance marketplace.
The tax credits, which help lower monthly premiums for people who purchase insurance through the exchange, are set to expire unless Congress acts. Covered California officials say some enrollees could face premium increases of hundreds of dollars per month, and hundreds of thousands could lose coverage altogether.
“We do have enrollees who will see their tax credit eligibility gone altogether if the federal government makes these changes,” said Jessica Altman, executive director of Covered California.
Altman said the loss of the enhanced subsidies could have significant affordability consequences for consumers across the state.
“These are some pretty big affordability impacts — big increases in what people are really paying for their coverage each month through Covered California,” she said.
State officials say California may be in a stronger position than many other states due to its extended open enrollment period, which runs through Jan. 31 for 2026 coverage, and additional state funding aimed at offsetting some of the potential losses.
California has allocated $190 million for 2026 to help reduce the impact of expiring Affordable Care Act tax credits. Even with the added funding, Altman said most enrollees would still see changes.
“Actually, most Covered California consumers will still receive a tax credit, but a less generous one,” she said.
Earlier this month, the state reported that more than 364,000 people had enrolled in coverage with state subsidies. About 30,000 of those enrollees are from Kern County, with roughly 93% receiving some form of tax credit.
“So that means there’s about 28,000 people in this community who will be impacted in one way or another,” Altman said.
Later this month, the U.S. House is expected to vote on a bill that would extend the enhanced subsidies for an additional three years. If the extension is approved, Covered California enrollees would be able to revisit and adjust their coverage before the Jan. 31 deadline.
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