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(KRON) — Covered California says its rates are increasing next year, and the California Association of Health Plans says GLP-1 drugs are among the reasons for increasing health care costs.
Covered California announced its proposed health plans for next year, and says statewide, rates will increase an average of 9.9%.
According to CAHP, the more expensive rates are being caused by many factors, including the increasing expenses from specialty and GLP-1 prescription drugs. They also say last year, Congress did not extend the federal tax credits that helped Californians afford their premiums.
“While this year’s average rate change of 9.9% is lower than last year’s 10.3%% increase, health plan premiums face strong pressure from ever-increasing hospital and prescription drug costs, the cumulative impact of legislative health care mandates, federal changes to Medicaid coverage and reduced ACA subsidies. Despite these challenges, we are working tirelessly to ensure Californians have access to quality, affordable health insurance.” said CAHP President and CEO Charles Bacchi.
Covered California says 60% of enrollees will see no increase to their monthly premiums due to existing federal tax credits and the state’s expanded subsidy program.
“Investing in the health of our residents is good for people. It’s also good policy,” said Governor Gavin Newsom. “The federal government has decided that health care affordability is not a priority, so California is stepping up once again to help families most in need across our state.”
The state’s subsidy program will also provide financial help to an additional 200K Californians who weren’t eligible in 2026, and prevent 90K people from dropping coverage next year.
Covered California encourages enrollees to shop around and switch to more affordable plans to lessen the impact of the increasing costs.
Open enrollment runs from November 1, 2026 to January 31, 2027
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