Covered California is set to kick off its open enrollment period on November 1, but prospective enrollees are already facing the reality of significantly higher healthcare costs associated with plans available under the state’s Affordable Care Act marketplace. For example, a couple in their mid-30s living in Sacramento, with an annual income of $50,000, could choose from a variety of healthcare options. Currently, they can find plans such as a Western Health HMO for just $33 a month, a Kaiser HMO for $166 a month, and a Blue Shield HMO for $181 a month. However, these prices are expected to soar next year, with projections indicating that costs for these same plans will rise dramatically to $278, $330, and $392 a month, respectively. This looming price surge translates to an overall doubling of healthcare costs through Covered California.
Jessica Altman, the Executive Director of Covered California, expressed concern over the impact of impending price increases, stating, “And the sticker shock is going to start happening.” The financial strain is acutely felt by enrollees, including Michael Lee Chang, a student at Sacramento State, who is already worrying about the rising costs associated with his family plan, which is projected to increase by $400 a month.
Chang conveyed the seriousness of the situation, revealing that he might have to cut back on essentials, saying, “I’m maybe thinking going one meal less a day. I mean, we’re talking drastic cuts to my life.” The price hikes are tied to broader issues affecting healthcare funding, particularly the ongoing political tensions in Congress that are threatening the continuation of tax subsidies. These subsidies, initially established during the COVID-19 pandemic, play a crucial role in making healthcare more affordable through Covered California.
Altman highlighted the uncertainty surrounding enrollment, noting that many consumers are grappling with a critical question: “What am I supposed to do?” She anticipates that the increased costs could lead to a significant drop in enrollment, estimating that as many as 400,000 Californians may choose to forgo coverage altogether due to the rising financial burden. Currently, approximately 2 million residents are enrolled in Covered California, a program that is becoming increasingly vital for accessing affordable healthcare in the state.
