ANTHONY VICTORIA, HOST: For 91.9 KVCR News, I’m Anthony Victoria, and this is Economics IE. I’m filling in as host this week for my colleague Madison Aument. Instead of hosting, Madison brings us this week’s report. Here in the Inland Empire, more than 190,000 people rely on Covered California for their health insurance. But premiums could double for some residents, as enhanced federal tax credits are set to expire. Democratic Congressman Pete Aguilar joined Covered California’s Executive Director to discuss the impacts. Now, here’s Madison.
MADISON AUMENT, BYLINE: About 90 percent of Inland Empire residents who have Covered California receive premium tax credits to help offset insurance premiums. The enhanced credits were introduced by the federal government in 2021. They were extended by Former President Biden through this year and will run out at the end of the year if Congress does not reach a deal to extend them.
JESSICA ALTMAN: When you look at the double whammy of premiums insurance companies are charging rising and the tax credits that Covered California enrollees are receiving are either getting lower or going away altogether, Covered California consumers are facing an average increase in what they pay each month for their health insurance of 97% — and that is 100% here.
AUMENT: That works out to an average increase of some 21-hundred dollars per year. Altman says Covered California has helped low-income Californians get healthcare. She says it’s also become a great resource for contractors, business owners and gig workers.
REP. PETE AGUILAR: There are people who are turning away their employer Provider Plan to join Covered California because it is better for them and their family. In order to ensure that that continues and people have the care that they need at an affordable rate, we need to ensure that these tax credits continue.
AUMENT: As health care costs continue to climb, another concern is emerging. Experts predict that younger and healthier people will forgo health insurance altogether because the costs are too high. One in six Californians are insured by Covered California. Altman says the number of enrollees could drop significantly.
ALTMAN: Our projection is that as many as 400,000 of our current enrollees could choose to go without cover — effectively be priced out of coverage — as a result of the expiration of these enhanced tax credits.
AUMENT: That means costs could rise even higher for people who can’t drop their health i insurance. California’s budget for 2026 allocates 190 million dollars to help lessen the impact of the tax credit cuts. But that can only soften the blow so much. The state is set to lose two and a half billion dollars if the credits aren’t extended. Open enrollment began on Saturday and ends at the end of January. Altman says those planning to enroll still have some affordable options.
ALTMAN: I could not more strongly encourage people, more than ever, this is the year to shop, to have an open mind and to look at what option might be there that fits your budget.
AUMENT: The premium tax credits aren’t the only cuts being made to healthcare. Earlier this year President Trump’s spending bill included substantial cuts to Medicaid in the next few years. Aguilar says the issue of healthcare affordability is compounding for many Americans.
AGUILAR: This isn't about, you know, red states and blue states and democratic health care and Republican health care. This is about providing health care to people and giving them options so they avoid the emergency room.
AUMENT: In the meantime, Aguilar says he’s pushing Congressional Republicans to come to the negotiating table to extend the tax credits. For KVCR News, I’m Madison Aument in San Bernardino.
VICTORIA: Join us again next Monday for Economics IE. Support for this segment comes from the Nowak family. You can find this segment on our website at kvcrnews.org/econie. For KVCR News, I’m Anthony Victoria.
