House Bill Passes Without Extending ACA Tax Credits, Sparking 97% Premium Hikes That Could Push 400,000 Californians Out of Covered California

House bill passes without extending ACA tax credits, 97% premium hikes could push 400,000 Californians out of Covered California and strain clinics.

House Bill and the Tax Credit Gap

On Wednesday, the House of Representatives approved a health‑care bill that Republicans say will lower insurance premiums. The legislation, however, does not extend the enhanced premium tax credits that have helped Californians afford coverage under the Affordable Care Act.

With Thursday marking the final day of the 2025 congressional session, lawmakers are unlikely to have time to consider a petition that would extend the credits before they expire.

Potential Impact on Californians

Without an extension, the premium tax credits will end on January 1, 2026. The loss of these subsidies could raise premiums by as much as 97%, according to Covered California. Jessica Altman of Covered California warns that “on average, what people on Covered California would pay if they stayed enrolled in their same plan is an increase of 97%.”

Altman further estimates that the loss of subsidies could force as many as 400,000 residents to leave Covered California because they can no longer afford the price.

As of 2025, roughly 2 million people are enrolled through Covered California, a figure that reflects nearly 94 % of California residents having health coverage in 2023.

Voices from the Frontlines

Dr. Edgar Chavez, CEO of Universal Community Health Clinic, says he and his colleagues across Los Angeles are worried that more uninsured patients will seek care without insurance.

“How many uninsured patients can we accept before we start becoming strained in terms of our budget,” Dr. Chavez said.

He added that patients without insurance will lose comprehensive care, including preventative services and cancer screenings.

“It’s going to be really difficult. Those people are going to struggle a lot. We’re going to struggle,” Chavez said.

Expert Insight

Altman’s comments highlight the financial strain that could spread beyond individual consumers. She notes that the loss of subsidies could cause a sharp rise in premiums, pushing a large number of Californians out of the state’s insurance marketplace.

Long‑Term Health Consequences

Dr. Chavez warned that the long‑term impact could be severe, as more people may skip preventive health services.

Some of them have already said, “if my premium doubles triple, I will not be able to pay for that,” Chavez said.

“That means that we won’t have the ability to give them all of the things that we want for preventive health,” he added.

Key Takeaways

• The House bill passed without extending ACA tax credits, risking a 97% premium hike.
• Up to 400,000 Californians could leave Covered California if subsidies lapse.
• Community clinics warn that a surge of uninsured patients will strain budgets and reduce preventive care.

The outcome of the 2025 session will determine whether Californians can keep the subsidies that have kept coverage high for the past decade. The stakes are clear: without federal action, the state’s health‑insurance landscape could shift dramatically, impacting both consumers and the clinics that serve them.