What changed for Covered California on February 1?

Enhanced federal subsidies expired, so only base ACA premium tax credits remain. Average premiums rose more than 10%, new sign-ups fell about 30%, and cancellations are rising. With the January 31 deadline over, many households face higher net costs unless they qualify for Medi-Cal or a special enrollment period.

How do ACA premium tax credits work now?

ACA premium tax credits still reduce premiums based on income and the benchmark silver plan, but the enhanced amounts that widened eligibility and deepened discounts ended. That means higher net premiums for many buyers, especially in silver tiers, and greater pressure to switch plans or reduce coverage to control monthly costs.

Why do enrollment declines matter for investors?

When enrollment drops, risk pools can worsen if healthier people leave first. That can raise medical loss ratios, influence 2027 pricing, and shift product mix. Hospitals may see more uncompensated care and higher bad debt. Monitoring enrollment updates, lapse rates, and provider disclosures can signal margin pressure in California.

What can consumers do after the deadline?

Check for special enrollment eligibility due to a qualifying life event, such as losing coverage or moving. Review Medi-Cal eligibility if income changed. Re-shop on Covered California to compare networks and metal tiers, and confirm prescriptions. Acting quickly can limit gaps and reduce net costs with available ACA premium tax credits.

Law and Government

Covered California February 01: Subsidy Expiry Hits Enrollment, Premiums

ByDanny Kontos February 2, 2026

Covered California enters February with pressure from subsidy expiration and higher premiums. As enhanced federal help ended, average rates rose by more than 10%, and new sign-ups fell about 30%. Cancellations are rising as households weigh higher costs against benefits. We see risks to coverage continuity, care access, and payer mix. For investors, California’s exchange-heavy market could shift as uninsured rates tick up and product mix changes, influencing medical loss ratios, pricing, and hospital bad debt exposure in 2026.