Some CA health care premiums could double this fall, U.S. Rep. Doris Matsui warns

Longtime Sacramento U.S. Rep. Doris Matsui says health care premiums in her district could rise an average of 111% this fall if insurance subsidies are not continued, a central flashpoint of the federal government shutdown.

The shutdown is happening because Democrats and Republicans in Congress can’t agree on a continuing resolution, which would keep the government funded at existing levels while new budget language is finalized. One major issue is whether or not to extend health care premium subsidies that were authorized in 2021.

“Companies are finalizing rates right now, and families are staring down the possibility of their monthly premiums doubling at least,” said Matsui during a news conference Friday morning. Open enrollment for health care plans in California begins November 1, 2025.

The conference was held at the Sacramento offices of Covered California, the health insurance marketplace that covers people who make too much money to qualify for the state’s Medicaid program but may not have employer-sponsored health care. About two million people in the state are enrolled through Covered California.

“Our enrollees are hairdressers, they are ride-share drivers, and they deserve health care as much as everyone else in our country,” said Jessica Altman, executive director of Covered California.

The average premium of a Covered California member in Sacramento is $166 per month, according to the marketplace. Statewide, it’s $182. However, the premiums range from $0 per month for enrollees with the lowest incomes to hundreds of dollars for middle-income people.

“These health care tax credits have been a lifeline for parents trying to balance multiple jobs, for our young adults who are going to college and don’t have access to other health care, for grandparents raising their grandchildren and for small business owners,” said Rachel Rios, executive director of Sacramento’s La Familia Counseling Center.

Altman estimated 400,000 people currently enrolled in marketplace plans in California will be forced to drop coverage if the tax credits expire and premiums rise.

Democrats and Republicans in Congress have been playing the blame game this week, accusing the other of not being willing to negotiate. Senate Majority Leader John Thune, R-South Dakota, has said he’s open to discussing extending the healthcare subsidies but not as part of the short-term continuing resolution. Democrats have held their ground on ensuring the extension is part of the seven-week funding bill.

The government officially shut down on Wednesday night, with no end in sight.

Matsui, a Democrat, said time is of the essence, and called on her Republican colleagues to negotiate.

“Let’s do this now. Let’s come together in a bipartisan way. We can do that, but we’ve got to do it now.”

This story was originally published October 3, 2025 at 12:43 PM.