SAN DIEGO (KGTV) — Covered California is touring the state as open enrollment begins.
It's addressing concerns about potential coverage costs if Congress allows key subsidies to expire, which could make insurance unaffordable for many Californians next year.
Jessica Altman, Covered California's Executive Director, said the state faces losing $2.5 billion in federal funding if Congress votes to let enhanced premium tax credits expire at the end of the year. These tax credits function as government-funded discounts for insurance companies.
However, Altman said California has prepared a backup plan if Congress allows the tax credits to expire.
"The state has allocated $190 million to keep monthly premiums reasonable for the lowest-income enrollees," Altman said. "It will not fill the $2.5 billion hole the federal government will leave California alone by failing to extend the enhanced tax credits."
Without these credits, monthly coverage costs for Covered California enrollees who receive tax credits are projected to increase by an average of 97%.
The expiration will also significantly impact children's coverage costs.
"Statewide, the projected premium increase for children under the age of 17 is $83. Now that might not sound like a lot to some of you, but it's a lot for our families," said Mayra Alvarez, president of The Children's Partnership.
In San Diego specifically, monthly premiums are projected to increase by $125 without the enhanced premium tax credits — a 76% increase for the region.
The situation remains fluid, with no certainty yet on whether the premium tax credits will continue. Altman said they will ensure consumers have enough time to select or switch their health plan if the credits change.
