More than 136,000 San Diegans are enrolled in health insurance plan through Covered California, with more than 100,000 receiving financial assistance.
SAN DIEGO — Health insurance premiums for Californians purchasing coverage through Covered California are expected to increase for the second consecutive year in 2027, with San Diego County facing an average projected increase of more than 13%, according to Covered California.
The statewide average premium increase is projected to be 9.9%. However, officials emphasize that the increase reflects what insurance companies charge before financial assistance is applied, meaning many consumers who qualify for subsidies may not see their monthly payments rise by the full amount.
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Covered California rates jump to over 13% in San Diego
Covered California, the state’s health insurance marketplace established under the Affordable Care Act, serves residents who do not qualify for Medicare, Medi-Cal or employer-sponsored insurance. More than 136,000 people in San Diego County are currently enrolled.
The projected premium increases come as enhanced federal tax credits that had expanded financial assistance for many enrollees are expiring, leaving thousands of Californians with higher out-of-pocket costs
For College Grove resident Diego Vasquez, the rising cost of health insurance has become another financial strain alongside housing expenses. Vasquez, who works in construction, said he currently goes without health insurance himself so he can afford coverage for his wife and their 15-month-old daughter through Covered California.
“It’s getting hard to afford rent and pay insurance,” Vasquez said.
Because his construction work provides an unpredictable income, Vasquez said his family is often forced to make difficult financial decisions.
“It gets kind of hard on us to be able to afford everything, so sometimes we have to make choices,” he said.
If premiums increase significantly, Vasquez said his family may consider dropping their health insurance and paying the state’s tax penalty instead if it costs less than maintaining coverage.
Jessica Altman, executive director of Covered California, said consumers should not assume the announced premium increase will automatically translate into a similar increase in their monthly bills.
“This is a moment to be empowered by being informed,” Altman said.
Altman noted that while insurers are requesting an average 9.9% premium increase, financial assistance continues to reduce costs for most enrollees.
“For the majority of our enrollees who are receiving those tax credits, the premiums may go up 9.9%, but what’s coming out of their bank account every month isn’t,” she said.
More than 100,000 of San Diego County’s 136,000 Covered California enrollees currently receive government subsidies. According to Covered California, the average monthly premium for an individual plan is about $670 before financial assistance, while the average subsidized monthly payment is approximately $194.
Altman stressed that consumers should focus on their actual monthly costs rather than the headline premium increases.
“It’s really important that people who are enrolled in Covered California, renewing, or even people coming to shop, recognize that this number we’re talking about is before the financial assistance is provided,” she said.
The expiration of enhanced federal tax credits is expected to have the greatest impact on middle-income households that previously qualified for additional assistance but will no longer be eligible. For an individual, that threshold is roughly $65,000 in annual income.
“That’s a population where they’re a little bit higher-income but still struggling to get by,” Altman said. “They’ve been hit particularly hard by some of the federal decisions, and that’s a group we really worry about.”
Covered California is encouraging consumers to compare plans during the enrollment period rather than automatically renewing their existing coverage. Altman said many enrollees may be able to switch to a different plan with lower premiums while keeping the same doctors and maintaining similar deductibles and co-pays.
Officials also encourage consumers to work with Covered California’s free enrollment counselors and community partners to review their options and determine what financial assistance they qualify for before making decisions about their health coverage.