Trump Is Significantly Increasing Health Care Costs and the GOP Shutdown Endangers Affordable Access for 2 Million Californians

SACRAMENTO — Because of Trump and Republicans’ draconian cuts and refusal to extend discounts, parents, older adults, entrepreneurs and families are poised to experience significant increases in their monthly health care costs — threatening affordable coverage for more than 2 million Californians.

How Trump and Republicans are Increasing Health Care Costs

For years, Democrats enacted federal subsidies that kept Covered California premiums affordable for millions of participants, from older adults who are retiring early to small business owners. But these important discounts are expiring at the end of 2025, because Congressional Republicans and Trump refused to extend them in this year’s GOP budget and spending plan. 

As a result, premiums are projected to more than double for the millions of people who rely on coverage through Covered California. 

Covered California’s open enrollment period began last week, on November 1. But instead of supporting families and workers with affordable care, Trump and Republicans pushed a “Big Ugly Bill” spending plan that slashes Affordable Care Act subsidies and forces parents and independent contractors to pay more for their health insurance.

Unless the Republican-controlled Congress changes course and extends the subsidies by the end of 2025, more than 2 million residents of our state will be impacted, California will lose $2.5 billion in premium savings, and up to 400,000 people statewide could be forced to drop their health care coverage due to cost increases.

What Speaker Robert Rivas Says

“Trump and Republicans gift-wrapped tax breaks for the rich, then took health care from the folks who need it most, hurting millions of people, from small business owners to retirees. It’s unacceptable. That’s why I’m fighting with Democrats to save and extend essential health premium discounts, because affordability is my top priority.”

Assembly Leaders Fight For Health Care Access and Affordability

“As Chair of the Budget Subcommittee No. 1 on Health, I hear every day from people who are struggling to afford health care. While Republicans in Washington play politics, Americans are paying the price of skyrocketing premiums caused by the loss of federal subsidies that have kept health coverage within reach. This isn’t an abstract budget fight — it’s a fight for people’s lives, health, and financial security. It’s time to renew the Affordable Care Act premiums before more harm is done,” said Assemblymember Dawn Addis (D-Morro Bay), chair of the Assembly Budget Subcommittee No. 1 on Health.

“It makes me angry to see families in our communities losing access to the care they’ve had, and should be able to depend on. Republicans in Washington somehow think they know better than women and their doctors, and that families can just ‘make it work’ and pay hundreds of dollars more a year for health insurance. National Republicans’ plan to explode health care premiums is an attack on women’s and families’ health and the freedom to make their own choices,” said Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters), chair of the Legislative Women's Caucus. “In small towns across California, where access to health care is already strained, there is no alternative when the local Planned Parenthood closes. These political games don’t hurt politicians — they hurt our moms, daughters, and neighbors. So, Democrats in California are fighting back. We’re making sure women can still see a doctor when they need to, and to make their own health decisions — because that’s what respecting freedom really means.”

“Trump and Republicans are waging a cruel war on women's health care, and California women are paying the price. Because of their Big Ugly bill, at least five Planned Parenthood centers have shuttered their doors, and thirty more have been forced to cut services- leaving women across our state without access to cancer screenings, birth control, and essential reproductive care. While Republicans prioritize tax cuts for the ultra-wealthy over women's health, under Speaker Rivas’ leadership, Assembly Democrats are fighting back. We will continue protecting reproductive freedom and ensuring every Californian has access to the care they need and deserve," said Assemblymember Rebecca Bauer-Kahan (D-Orinda), chair of the Assembly Select Committee on Reproductive Health.

“California families are already feeling the pain of skyrocketing health insurance costs as Trump and Congressional Republicans roll back the popular subsidies that kept coverage affordable, kicking millions off their plans. Trump’s push to end the Biden-era subsidies would double premiums for more than 2 million Californians, push 400,000 out of the insurance market, and drive up prices across the board for consumers. At the same time, H.R. 1, their ‘Big Bad Bill,’ H.R. puts 3.4 million Californians’ Medi-Cal coverage at risk and would cost the state $30 billion in federal health funding every year. As Chair of the Assembly Health Committee, I’ve been sounding the alarm that this bill will gut Medi-Cal, defund Planned Parenthood, and leave patients, providers, and hospitals facing severe financial strain. We need to end this shutdown, restore the subsidies working families rely on, and keep fighting to ensure every Californian has access to affordable, quality health care,” said Assemblymember Mia Bonta (D-Oakland), chair of the Assembly Health Committee.

“Every day I hear stories from people whose healthcare costs are doubling or worse. If the federal subsidies are allowed to expire, some will face healthcare costs higher than their mortgage or rent. It doesn’t have to be this way. Having worked as a nurse advocate for more than a decade, and through my work on Assembly health committees, it’s clear that allowing premiums to rise is not just a policy decision. It means that families are forced to choose between healthcare and food, businesses have to lay off workers, seniors will skip needed medications, and too many in our community will go without any healthcare - meaning lives will be lost. That’s why I led budget efforts to cut deductibles and fund premium subsidies - giving access to affordable healthcare. Californians deserve healthcare that doesn’t put them into debt, strong local hospitals, and the freedom to make their own health decisions — and we will keep fighting to protect that,” said Assemblymember Pilar Schiavo (D-Santa Clarita), chair of the Assembly Military and Veterans Affairs Committee.

“We are in the longest government shutdown in American history. People are hurting and now health care premiums will increase for those who can least afford it. We spent two years fighting to save our rural community hospital in Madera County, because losing it would result in people losing their lives. Now, more rural hospitals across our state are at risk of closing their doors due to the federal shutdown and cuts to the health care system.  Our community demands and deserves access to health care coverage that is affordable,” said Assemblymember Esmeralda Soria (D-Merced), chair of the Assembly Agriculture Committee.

Republican Attacks on Women’s Health and Reproductive Freedom

Trump’s refusal to keep health care affordable is part of a broader Republican effort to undermine access nationwide. From threatening reproductive freedom to defunding hospitals, their “Big Ugly” spending plan deepens the crisis for working families, women and rural communities.

Trump and Congressional Republicans passed his spending plan in early July, containing a one year prohibition on Medicaid (Medi-Cal) payments to nonprofits that offer abortion services and received substantial Medicaid funding in 2023. This prohibition applies to all Planned Parenthood clinics.

Although litigation is ongoing, Planned Parenthood was defunded twice this year — first in July and again beginning September 11. As a result, at least five clinics in California have closed and more than 30 others have reduced services, cutting off essential reproductive and preventive care.

Trump Administration Threatens Rural Hospitals

Trump and Republicans’ “Ugly Bill” goes even further by implementing onerous and unnecessary work requirements that could push millions of Californians off of their Medicaid/Medi-Cal coverage. It also limits provider taxes that provide crucial funding within the health care system. 

Earlier this year, Trump’s federal Centers for Medicare and Medicaid Services stripped Glenn Medical Center of its “critical access” designation, slashing the only hospital in Glenn County’s annual revenue by 40%. On October 21, the hospital was forced to end all inpatient services, leaving residents without local care.

Assembly Democrats Are Protecting Access and Fighting for Affordability

While Republicans in Washington play politics with Americans’ health care, California Democrats are fighting back:

• This year’s California state budget includes $195 million for Covered California, giving low-income residents subsidies to eliminate premiums entirely.
• If Congress restores federal subsidies, state funds will be used to reduce copays and deductibles for Californians enrolled in Silver plans.
• California has also dedicated over $140 million to reimburse services provided by Planned Parenthood clinics and passed new laws to safeguard reproductive freedom despite GOP attacks.
• The Distressed Hospital Loan Program, passed by the Legislature in 2023, has already helped Madera Community Hospital reopen and kept other hospitals from shutting down, before the “Big Ugly Bill’s” full impacts have been felt. 

Additional data from Covered California, including current breakdowns of enrollment and costs, can be found here.

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For more information, follow Speaker Robert Rivas at the following social media channels:

Instagram: @caspeakerrivas

Facebook: www.facebook.com/CASpeakerRivas/