Covered California rates to jump nearly 10% as thousands struggle to afford coverage

Covered California, the state's ACA marketplace, announced an average rate increase of 9.8% for 2027 plans. This marks the largest single-year hike since 2018 and will affect approximately 1.7 million enrollees. Officials cite rising medical costs, particularly for specialty drugs and hospital services, as the primary driver. The increase comes as federal enhanced subsidies enacted during the pandemic are set to expire, potentially creating a 'double hit' for many consumers. Higher premiums on the individual market often push more patients toward high-deductible plans or cause them to drop coverage altogether, increasing bad debt for providers. Practices in California should prepare for potential shifts in patient insurance mix and higher out-of-pocket cost discussions during the 2027 open enrollment period.