Covered California health insurance will cost more in 2026. Here's what's behind the increase

Californians who get their health insurance through the state’s marketplace will see premiums increase by an average of 10.3% next year.

Covered California officials on Thursday announced the first double-digit rate increase since 2018, saying it represents a “confluence” of factors putting upward pressure on the market.

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Rising health care costs, the expiration of enhanced federal subsidies and policy-driven market uncertainty together are fueling the hike, Covered California Director Jessica Altman said.

Insurers in recent years have expected health care costs to increase by about 8% each year. That makes up the bulk of next year’s increase. But Altman said about 2% of the rate increase in the state’s version of t