Some premium subsidies are set to expire at the end of 2025 unless Congress decides to extend them. As we get closer to open enrollment for next year, it's important to know how these changes might affect you.
What are premium subsidies and what could happen to my financial help in 2026?
Premium subsidies are a type of financial help that individuals and families can get based on their income. If you qualify, these subsidies can help lower the amount you have to pay each month for your health insurance, making it more affordable.
During the COVID-19 pandemic, laws were passed to temporarily increase premium subsidies until the end of 2025. These enhanced premium subsidies not only gave more financial help to people who already qualified, they also allowed people with middle incomes to get financial help when they weren't able to before.
At the end of 2025, these enhanced premium subsidies are set to end, which means many people might get less financial help in 2026 or might not get any help at all.
What will happen to my health insurance costs in 2026?
If the enhanced premium subsidies expire on Dec. 31, you will likely see a higher monthly premium cost and/or higher copays, deductibles and out-of-pocket maximums when you renew your plan. You may also get less financial help, or you may not qualify for financial help at all next year.
Your monthly costs also depend on things like your age, where you live, the type of plan you have, and your family's income and size. If any of these things change, it could further affect how much you pay next year.
How can I get more information about my financial help for next year?
When open enrollment starts on Nov. 1, 2025, Covered California™ will share information about the financial help you might qualify for in the next year. You can get that information by logging in or creating a Covered California account.
If you have questions about your financial help, you can contact Covered California at 1-800-300-1506 or visit coveredca.com to start a live chat with a representative. If you have a broker, you can also contact them for support.
What can I do to prepare for open enrollment?
We recommend the following:
- Open enrollment is from Nov. 1 to Jan. 31, and it's when you can enroll or make changes to your plan.
- If you're enrolled through Covered California, keep an eye out for mail and digital communications from them as the 2026 open enrollment period gets closer.
- Start to gather important documents, like your pay stubs, W-2s, 1099s or prior tax returns — especially if you have variable income.
- If you've gotten premium subsidies to lower your monthly health insurance costs, be sure to file your federal tax return.
- If you have a Covered California account, make sure it reflects your current household size, dependent status and mailing address.
- Begin reviewing your health care needs and budget for next year so if you need to shop for a new plan, you know what kind of coverage you'll need.
