Newsom Warns Californians Face Soaring Health Premiums in January Without Congressional Action

Millions of Californians could see their monthly health insurance premiums nearly double beginning in January if Congress does not act to extend federal tax credits that help keep coverage affordable, Gov. Gavin Newsom warned Thursday.

The governor blamed recent cuts enacted under former President Donald Trump’s HR 1, dubbed the “Big Beautiful Bill,” saying they slashed critical Affordable Care Act funding and left nearly 2 million Californians in the state’s health marketplace, Covered California, facing steep hikes.

“California has led the nation in expanding access to affordable health care, but Donald Trump is ripping it away,” Newsom said in a statement. “His Big Beautiful Betrayal gutted critical health care programs, and unless Republicans agree, nearly 2 million Californians will be hit with unaffordable bill hikes — and hundreds of thousands could lose coverage altogether.”

According to the Newsom administration, the expiration of enhanced premium tax credits could result in an average 97 percent increase in monthly premiums for Covered California enrollees, with some households facing increases exceeding 300 percent. The hikes would take effect in January unless Congress acts as part of negotiations to end the federal government shutdown, which began on October 1.

Democrats in Congress say they support extending the tax credits in a stopgap measure to reopen the government, but Republicans have blocked the proposal in the Senate, where it fell short of the 60 votes needed to advance.

State Health and Human Services Secretary Kim Johnson said the looming increases could force many families to forgo coverage.

“Increasing out-of-pocket health care costs puts coverage out of reach for millions of Californians and others across the nation,” Johnson said. “Without federal action, the health of our communities is at risk.”

The Newsom administration highlighted groups it says will be hardest hit including low-income residents earning less than $62,600 annually, who could see monthly premiums rise from $97 to $182; older adults aged 55–64 would face an average increase from $186 to $365 per month; 500,000 self-employed workers would pay $131 more each month. The hardest hit would be more than 160,000 middle-income Californians who currently save about $500 a month through the credits, and would lose those savings entirely.

Additionally, the closure of emergency services at a rural hospital in Glenn County just days ago is linked to reduced Medicaid reimbursement rates tied to the “Big Beautiful Bill.” State officials said the cuts strained the already thin budgets of rural health facilities, contributing to the emergency room shutdown and leaving residents in the northern Sacramento Valley region with longer travel times for emergency care.

Covered California reached nearly 2 million enrollees this year, a record high that helped drive the state’s uninsured rate to historic lows. Newsom warned that the gains could unravel if Congress does not renew the funding.