This Week, Trump and Republicans Force Massive Health Care Premium Increases on Millions of Californians

SACRAMENTO — Millions of Californians are experiencing higher health care bills this month because Donald Trump and Republicans refused to extend Affordable Care Act subsidies, which kept the price of coverage lower for working families, seniors, veterans and small business owners.

In California alone, nearly 2 million Covered California enrollees are facing premium increases that could double their health care monthly costs, forcing hundreds of thousands to reconsider whether they can afford health coverage at all.

This is happening because Trump and Republicans refused to renew ACA Enhanced Premium Tax Credits before the end of the year. Support for affordable coverage through state health care exchanges was officially cut off on December 31. 

Trump is Increasing Premiums For Families Across California

With the enhanced ACA subsidies now expired, families are facing a sudden and punishing jump in health care costs. 

The loss of premium tax credits means middle-income Californians who were once protected will see plan costs spike overnight — even when their incomes haven’t changed.

For older adults nearing retirement and small business owners who buy coverage on their own, the impact is especially severe. Monthly premiums are spiking, out-of-pocket costs are rising, and many households are being forced to make impossible choices about their health and finances. 

Covered California estimates the loss of $2.5 billion in premium savings statewide, with up to 400,000 people at risk of forgoing coverage altogether.

Republicans Continue to Raise Costs and Threaten Coverage

Trump and Congressional Republicans continue to put health care coverage at risk for families nationwide. 

And Californians are feeling the consequences more acutely because the state has led the nation in expanding access to care.

The Golden State built one of the most successful Affordable Care Act marketplaces in the country, and took bold steps to expand Medi-Cal so that families, seniors, and children can get the care they need. Today, one-in-three Californians — and roughly half of all children — rely on Medi-Cal, making Republican cuts and new work requirements especially harmful: These policies threaten to strip coverage from millions and shift more costs onto families who cannot afford them.

At the same time, Trump’s H.R. 1 spending plan and related actions are already undermining care across the state. 

GOP cuts targeting women’s reproductive health providers have forced Planned Parenthood clinic closures and service reductions in both urban and rural communities, limiting access to essential preventive and reproductive care. Hospitals serving rural areas are facing increased financial strain, pushing vulnerable communities closer to losing care altogether.

California Democrats Step-Up With Solutions When Republicans Fail

While Republicans in Washington blocked solutions, Democrats in the state Legislature acted to protect Californians:

• The state budget includes $195 million for Covered California subsidies, allowing the lowest-income Californians to access plans with zero monthly premiums.
• California invested over $140 million to protect Planned Parenthood and safeguard reproductive care amid GOP defunding.
• The Legislature’s Distressed Hospital Loan Program has already helped keep hospitals open and preserve access in underserved areas.

While California cannot undo harmful Republican actions on its own, the Legislature will continue doing everything in its power to keep families connected to care. Assembly Democrats remain focused on what can be done at the state level to reduce costs, preserve coverage, and prevent families from being forced to choose between their health and their household budgets.