Covered California has roughly 50,000 fewer plan selections this year as Californians face difficult decisions about their healthcare. Some consumers are switching to lower-tier coverage or considering going uninsured as they weigh their options. A recent NBC Los Angeles report highlights how the expiration of enhanced federal premium tax credits has left many consumers paying substantially more for coverage.
The End of Subsidies and What That Meant for Californians
The enhanced federal subsidies, which had helped reduce monthly premiums for millions of Americans, expired at the end of 2025. As a result, many Covered California enrollees saw their financial assistance decrease or disappear altogether in 2026. Recent data showed that the average premium for Californians receiving tax credits during open enrollment increased from $187 to $264 per month, an increase of $924 per year.
For some families, these higher monthly costs have added significant pressure to household budgets. In the case of Los Angeles resident Marc Silverman, he is now paying $800 a month for what he described to NBC Los Angeles as a “fairly minimal plan.” His wife was recently diagnosed with breast cancer and as a result needs a better plan, which costs her about $2,000 a month.
For Silverman and his wife, the search for health insurance came after he left Warner Music, his employer of 30 years. through his former employer and COBRA ended, they turned to the individual marketplace for coverage. As Silverman told NBC Los Angeles, “it was really the marketplace, and that’s it.”
While Silverman said he does not have a problem with the coverage itself, the cost remains a concern. NBC Los Angeles reported that in addition to their monthly premiums, the couple faces out-of-pocket costs when receiving care. Silverman also said his wife requires two breast exams each year following her cancer diagnosis, while their insurance pays for one.
Silverman’s experience reflects the affordability concerns facing some Californians purchasing coverage through the individual marketplace. With premiums and out-of-pocket expenses putting additional pressure on household budgets, some consumers are reconsidering their healthcare options.
The Future of California Healthcare Could Be More Problematic
Covered California, which is California’s healthcare marketplace, has announced a preliminary weighted average rate increase of 9.9% for 2027, which has raised additional concerns about affordability. According to Covered California, rising healthcare and pharmacy costs are among the factors contributing to higher rates.
The increase could put additional pressure on household budgets and lead some Californians to reevaluate their coverage options.
America’s HealthShare Members Exempt from State Tax Penalty
California residents who go without qualifying health insurance can face a significant state tax penalty, potentially $950 or more per adult and $2,850 or more for a family of four. But Californians have another option: members of qualifying health care sharing ministries can claim an exemption from the state’s individual mandate, and America’s HealthShare membership qualifies for this exemption.
At America’s HealthShare, we believe that affordable, quality healthcare is possible and should be accessible to all Americans. We see the struggles of countless American families who are stuck between trying to cover basic household expenses and paying for healthcare for their loved ones, and we know that better options exist.
For more information about how you can join the America’s HealthShare community, please check pricing online or give our Member Care team a call today at (580) AMERI-HS.
