Even Though It Is Subsidized By Taxpayers, ‘Covered California’ Rates Are Set To Rise In 2025
Covered California is raising its rates nearly 8% in 2025.
The rate hike is due to more people using Covered California as their primary health care provider, increases in pharmacy expenditures, the rising cost of providing medical care, and labor shortages.
Covered California rates are heavily subsidized by taxpayers who are not enrolled in Covered California, and are paying a lot more for their own healthcare through an employers plan.
More than one million low-income people in California will qualify for the state’s cost-sharing reduction program, which will eliminate deductibles and lower the cost of care, through Covered California.
There are more tax dollars coming from the federal government through the Inflation Reduction Act.
Starting November 1st 2024, children in the United States under the DACA Program, Deferred Action for Childhood Arrivals, will be able to sign up for Covered California health care coverage.
Covered California rate hikes since 2021.
| Year | 2021 | 2022 | 2023 | 2024 | 2025 | 5-Year Compounded Average |
| Weighted Average | 0.5% | 1.8% | 5.6% | 9.6% | 7.9% | 5.0% |
The 7.9 percent increase for 2025 reflects an average of proposed rates across all health insurers that offer individual plans. Rates can differ greatly by plan and region.
Closeup of a doctor listening to the lungs of a male patient in a hospital gown.
Photo from Alpha Media USA Portland OR
