CAHP Press Release: CAHP Issues Statement on Covered California Preliminary 2027 Rate Changes
Covered California today announced preliminary health insurance rates for 2027, citing an average statewide rate change of 9.9 percent. This rate is lower than last year’s 10.3 percent increase. The proposed rate can be attributed to many factors, including: rising hospital costs, the increasing impact of specialty and GLP-1 prescription drug expenditures, the cumulative costs of new state health coverage mandates, federal changes to Medicaid coverage, among other factors. Last year, Congress did not extend the enhanced federal tax credits that helped Californians afford their premiums in the Covered California exchange, further adding pressure to premium costs.
CAHP Fact Sheet: Top Cost Drivers of 2027 Premiums
California’s health plan premium costs in 2027 will be driven by several factors across the individual and small group marketplaces, specifically: increased hospital costs, growth of expensive weight-loss and specialty drugs, the cumulative cost of legislative health care mandates, higher provider labor costs, and a sicker risk pool caused by enrollment changes after subsidy reductions, among other factors.