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Loss of Subsidies Fuels 19% Covered California Drop

6/3/2026

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Story summary
  • The loss of enhanced federal subsidies and rising premiums sparked a surge in cancellations on Covered California.
  • In the first three months of 2026, 374,000 Californians canceled coverage, equal to 19 % of renewals.
  • Average premiums on Covered California plans rose by more than 10 % as medical costs accelerated.
  • Governor Gavin Newsom proposed $300 million in state subsidies for 2027 and an additional $27 million for gender-affirming care.