SAN BERNARDINO COUNTY – Covered California announced a preliminary 12.5% average rate hike for 2026 health plans in San Bernardino and Riverside counties, affecting 186,850 enrollees.

Statewide, the average rate hike is projected at 10.3%. 

The rise is driven by higher health care and pharmacy costs. In addition, federal enhanced premium tax credits that have helped lower premiums for millions of Americans since 2021 will expire at the end of 2025.

These tax credits were introduced under the American Rescue Plan and extended through the Inflation Reduction Act. They increased the amount of subsidies and expanded eligibility, which has reduced premiums for Americans.

Covered California says rate hikes could be smaller if Congress extends these credits, which have boosted enrollment over the past four years.

Without an extension, consumers face sharply higher costs in 2026.

Impact on middle- and low-income Californians

If the tax credits expire, more than 173,000 middle-income consumers in California and 1.5 million nationwide would lose eligibility for subsidized coverage, according to Covered California.

An estimated 1.7 million Californians could see premiums jump an average of 66%. Low-income enrollees would still receive tax credits but could see premiums rise by 58%.

For example, a 25-year-old living in San Bernardino County and earning roughly $30,000 annually could see monthly premiums for the second-lowest-cost Silver plan jump from $52 to $154 – an increase of nearly 200%.

In addition, approximately 399,000 fewer Californians could have subsidized marketplace coverage, a decline of about 25%.

California steps in to help the most vulnerable 

For 2026, California is providing $190 million in subsidies to keep premiums for individuals earning up to 150% of the federal poverty level similar to 2025 levels. Funding would also aid those earning up to 165% of the federal poverty level.

While this support helps low-income enrollees, it does not fill the $2.1 billion gap left by the federal government.

If Congress extends the federal enhanced premium tax credits, Covered California can maintain its state program, which keeps out-of-pocket costs lower for most enrollees.

Currently, no legislation has confirmed an extension of these federal credits.

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