Millions of Californians to see health care premiums soar as federal subsidies set to expire
Dec 17, 2025
Congressional lawmakers are scrambling to address the looming rise of health insurance premiums. Meanwhile, many Californians — under pressure of Covered California’s open enrollment deadline next month— are watching to see if federal lawmakers will extend enhanced premium tax credits under th
e Affordable Care Act, also known as Obamacare.
On Wednesday, four congressional Republicans joined Democrats, signing a petition to force a vote on funding for the ACA.
If the enhanced health care tax credits do expire as expected, insurance costs are expected to double, on average, for about 22 million people who get their coverage through the Affordable Care Act.
Around 1.5 million Californians receive their coverage through Covered California which is the state’s marketplace.
“Unfortunately, if we don’t see action from Washington D.C., we do anticipate to see people as many as 400,000 leave Covered California because they can no longer afford the price,” said Jessica Altman, Executive Director at Covered California.
Anxiety is growing in California over the looming spike in the cost of health care premiums.
San Diego resident Tom Patterson shared his near-death experience with NBC 7. He said affordable health care is important for everyone.
“Like many people, I love to travel,” Patterson said.
“In 2015, my wife and I were taking a trip to Egypt, which was on my bucket list and I got infected with a ‘superbug.’ I was medevaced first to Germany and then to San Diego. Had I not had health insurance, it’s clear I would have gone bankrupt, lost my home, and would be in debt for the rest of my life,” Patterson said.
Patterson himself does not rely on the ACA but his daughters do and he is worried about their financial future.
The ACA funding bill is not expected to come to the floor before the Dec. 31 deadline, meaning the subsidies will expire.
Congressional lawmakers are expected to return to Washington on Jan. 6, meaning the vote on a three-year extension will likely happen mid-January.
If it passes, it will still need to clear the U.S. Senate.
While the future of the ACA and its tax credits hang in the balance, Patterson remains optimistic.
“I am optimistic that this is going to pass, but I think it shouldn’t be just a small short-term addendum, it should be some long term,” Patterson said.
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