Why CA health care premiums could soar unless Congress acts quickly
Get ready for a big jump in health care premiums next year if you’re getting federal help with the cost. But there are Republicans and Democrats who are pushing hard to prevent the sudden increase.
The government’s premium tax credits began in 2014 and were expanded in 2021. Those enhanced credits are due to expire at the end of this year.
Experts say the increases could be huge.
In the Sacramento area, KFF, which studies health care issues, estimates that if the premium help is discontinued, a family of four, with each parent 40 years old and with children 8 and 11 and a $100,000 annual income, would pay $721 a month for a “silver plan.” They now pay $543 monthly.
A silver plan is one of the options Obamacare offers to those who qualify. The amount of the credit is tied to one’s income.
Other Obamacare plans, gold or platinum, have higher monthly premiums but generally lower out-of-pocket costs for medical services
Will Congress act?
House Speaker Mike Johnson, R-La., has not ruled out continuing the subsidies, and Friday got a push from members of both parties who proposed legislation to continue them.
They included David Valadao, R-Hanford, who could be vulnerable in next year’s election. He ‘s seeking a one-year extension of the premium aid while Congress seeks a more permanent solution.
“Too many hardworking families across California are already struggling with health care costs, and the last thing they need is a sudden spike in their health insurance premiums,” said Valadao.
The congressman is under fire from Democrats for his vote earlier this summer on the Big Beautiful Bill, which slashed Medicaid spending.
The California Health Care Foundation, an independent nonprofit group that studies health issues, found that two-thirds of Valadao’s constituents get aid from Medi-Cal, the Medicaid program in California. The congressman’s district includes most of Kings County and slices of Tulare and Kern counties.
Valadao urged Republican leaders not to make such deep cuts, but wound up voting for the bill.
Valadao vs. Democrats
As he pushed the plan to continue the enhanced Obamacare subsidies, Democrats blasted him Monday.
“Phony moderate Valadao has nothing to run on and no meaningful accomplishment, which is why he is relying on a short-term band-aid to salvage his seat in Congress,” said Anna Elsasser, Democratic Congressional Campaign Committee spokeswoman.
The fate of the subsidies remains unclear. An extension could be part of legislation to fund the federal government past Sept. 30, when current funding measures expire. Or it could be part of other bills this year.
“Extending the credits is a heavy lift and the issue would need to move to the top of the list for the credits to be extended — for Democrats because they decide it belongs there, and for Republicans to avoid punishment at the polls,” wrote Drew Altman, KFF president & chief executive officer.,
“It remains to be seen if that will happen, if the media will focus, and when and if the public will engage. There is no other health decision currently pending that will affect the health coverage of so many people,” he said.
This story was originally published September 8, 2025 at 1:09 PM with the headline "Why CA health care premiums could soar unless Congress acts quickly."
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