As Congress considers making federal premium subsidies permanent, CA health advocates issue new reports on impacts by congressional district and region
Reports also highlight what is at risk if the federal subsidies aren’t extended in the Central Valley and Riverside County, along with health impacts of the Inflation Reduction Act and the Affordable Care Act in those regions
SACRAMENTO, CA – Health Access California, the statewide health care consumer advocacy coalition, today issued new reports on the impact of congressional actions on the health of Californians. These are the first reports to breakdown recent data by congressional district and region, starting first with the Central Valley region and Riverside County. More regional data will be forthcoming.
These new reports come on the heels of two other statewide reports issued over the last week from the UC Berkeley Labor Center: “All 2.37 million Californians in the individual market will face higher premiums if Congress does not act by 2025” and Covered California: “Consumer Premiums Will Spike And Insurance Enrollment Gains Will Be Reversed If Premium Tax Credits Are Allowed to Expire” which detail the cost impacts of losing the federal premium subsidies. Their statewide findings include:
- On average, Covered California enrollees could see premiums increase by 63%, paying $98 more per month, or over $1,000 more per year.
- More than 150,000 middle income consumers who earn more than about $58,000 per year, will lose eligibility for premium tax credits entirely.
- An additional 69,000 Californians could become uninsured due to increased premium costs.
Health Access’ reports go even further, breaking down the impacts of the federal premium tax credits by congressional district and region. The statewide report highlights how many people per congressional district receive subsidies, how much their premiums would go up annually without these subsidies and includes the number of people in Medicare per district that are potentially benefiting from changes to the program as part of the Inflation Reduction Act.
As recently as last week, Congress held hearings on the impacts of the federal premium subsides extended in the Inflation Reduction Act, and more than a dozen members of the California delegation signed onto a bicameral letter calling for congressional leaders to act before these tax credits expire. These premium subsidies expire at the end of 2025, but congressional action is critical now. Covered California is already starting to put together costs and coverage options for 2026, and the longer the subsidies are delayed in Congress, the more likely there will be an impact on consumers.
“California has seen record enrollment in health care coverage, largely thanks to congressional efforts to improve our health care system and make it more affordable. But much of that is at risk if our representatives in D.C. don’t take action now,” said Amanda McAllister-Wallner, interim Executive Director for Health Access California. “As Congress considers extending the federal financial help to afford health premiums, they should know just how the people in their districts will be affected by their votes. The choice is clear: they can act make sure their constituents get and keep care, or they can choose inaction at the risk of spiking health care costs and increasing the uninsured rate in their districts.”
Digging deeper into the broader impacts of congressional action over the last decade and a half, two regional reports focusing on the Central Valley and Riverside County highlight the cost benefits of the premium subsidies and state-level investments in cost-sharing reductions, as well as implications for Medicare, Medi-Cal, and other consumer protections.
“Since the signing of the Affordable Care Act, nearly 7 million people in California have gained more affordable health care coverage, another nearly 7 million are benefiting from lower costs in Medicare, and tens of millions more are protected from discrimination based on pre-existing conditions, race, sexuality, and more,” said McAllister-Wallner. “California congressmembers that have taken a stand in support of health care consumers over the years should be proud of the progress we’ve made towards a health care system that works better for all Californians. California consumers deserve to know how federal actions have affected the cost of their health care and where their members stand on future efforts to lower costs.”
For example, in the Central Valley (which includes the counties of Kern, Kings, Tulare, Merced, Fresno, Madera, San Joaquin & Stanislaus), 140,000 Californians benefit from federal premium subsidies through Covered California, and another 75,000 pay lower co-pays and deductibles through their plan with state investments. These cost-sharing reductions may be at risk if federal dollars expire. Another 650,000 in the Central Valley are enrolled in Medicare, potentially seeing benefits of the Inflation Reduction Act through Medicare prescription drug price negotiations lowering costs, $35/month caps on insulin, and lower out-of-pocket maximums. Since the removal of barriers in Medi-Cal through the Affordable Care Act and state-level expansions, another 140,000 in the Central Valley now have access to comprehensive, preventative health care.
Read more about the impacts of federal action in the Central Valley.
Read about the impacts of federal action in Riverside County.
See the impacts of federal action in all CA congressional districts.
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Press inquires can be directed to:
Rachel Linn Gish, rlinngish@health-access.org