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.
CAHP Press Release: Governor’s Budget Decision Raises Taxes on Health Coverage for Working Families and Leaves Vulnerable Immigrant Communities Behind
The California Association of Health Plans today issued a statement in response to Governor Newsom’s approval of the 2026-27 State Budget agreement, which includes a $1.5 billion tax increase on commercial health coverage that will raise premiums by more than $400 a year for a family of four. The budget agreement also forces immigrant communities off Medi-Cal Managed Care and into lower-quality fee-for-service, leaving many vulnerable Californians without needed care.
CAHP Press Release: ICYMI – Sacramento Business Journal: Opinion — Managed care tax would raise healthcare costs for California families, small businesses
A new op-ed in the Sacramento Business Journal by Dr. Khuram Arif, President and CEO of Western Health Advantage, raises serious concerns about a $1.5 billion tax on commercial health coverage included in the state budget agreement now before Governor Newsom, warning that it would result in harmful premium increases for Californians and small businesses already struggling with rising costs.
CAHP Press Release: CAHP Warns Assembly-Approved Health Insurance Tax Will Drive Up Consumer Premiums, Urges Senate to Reject Proposal
The California Association of Health Plans today issued a statement in response to the Assembly's passage of the 2026-27 State Budget proposal, which includes Governor Newsom's $1.5 billion tax increase on commercial health coverage and will raise premiums by more than $400 a year for California’s working families.
CAHP Press Release: ICYMI – OC Register: Newsom’s health tax will hurt our small businesses — and may not even be legal
A new op-ed in the Orange County Register by Michael Hedges, president of the California Small Business Association, is sounding the alarm on Gov. Newsom’s proposed $1.5 billion tax on commercial health insurance. The op-ed, published June 11, warns that the proposed managed care organization (MCO) would impose a steep increase on health care premiums for hard working Californians, including small business owners throughout the state.
CAHP Press Release: ICYMI – WSJ: Newsom’s California Health Tax Gambit
The Wall Street Journal editorial board is calling attention to Governor Gavin Newsom’s proposed overhaul of California’s managed care organization (MCO) tax, warning that the plan could increase health insurance premiums for workers, employers and families already struggling with the high cost of living.
CAHP Press Release: ICYMI – POLITICO: The Health Care Tax That Helped Keep California Afloat is Now a Political Minefield for Newsom
Politico CA today highlighted the growing political and public concern surrounding Governor Gavin Newsom’s proposal in the California State budget that would raise premiums on Californians already struggling with high household costs by hundreds of dollars per year.
CAHP Fact Sheet: Managed Care Organization (MCO) Tax Proposal in May Revise Will Raise the Cost of Health Care Coverage by $1.5 Billion
California’s Workers, Employers and Families Can’t Afford Higher Health Care Premiums 83% of Californians say lowering health care costs should be a top priority for lawmakers. The state even created the Office of Health Care Affordability (OHCA) to rein in health care spending. Yet the proposed MCO Tax in the Governor’s May Revise is estimated to increase the cost of health care coverage by $1.5 billion each year.
CAHP Press Release: California State Senate Approves CAHP Sponsored Bill to Lower Prescription Drug Costs
The California State Senate has approved SB 1094 (Weber Pierson). This landmark bill, which passed 36-0, is estimated to reduce prescription drug costs in California by $88 million annually and improve health care affordability for millions of Californians. Sponsored by the California Association of Health Plans, SB 1094 allows health plans and pharmacists more flexibility to offer patients safe, effective, lower cost biosimilars in place of higher cost brand-name biologic drugs.