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Commentary: Will Covered California Land on Life Support?

CALIFORNIA, JUL 9 – Federal budget cuts could cost California $28.4 billion over 10 years and cause 3.4 million residents to lose Medi-Cal coverage, officials warn.

  • Covered California, the state's health insurance exchange, faces potential shrinking and premium hikes after federal subsidies set to expire this year.
  • The expiration follows enhanced subsidies from the American Rescue Plan in 2021, renewed through 2025 by the Inflation Reduction Act, but the GOP's budget bill makes no provision to extend them.
  • Covered California’s enrollment surpassed close to 2 million individuals in the early part of this year, including over 345,000 new enrollees from the most recent open enrollment period, catering to a varied population that includes many sole proprietors and gig workers.
  • Without subsidy extensions, premiums could increase by over 75%, possibly causing 660,000 Californians to lose coverage and forcing many to leave Covered California due to cost.
  • These changes threaten to increase the uninsured rate, degrade public health, reduce food assistance to millions, and strain Medi-Cal, which 15 million Californians rely on for care.
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Protect Our Care broke the news in on Wednesday, July 9, 2025.
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