Covered California has announced that thousands of residents will experience an 8% increase in health insurance premiums for 2025, which is a slight decrease from the 10% hike seen in the previous year, the largest since 2018. This rise is attributed to escalating pharmacy costs, labor shortages in healthcare, and increased wage growth in the industry. While many individuals enrolled in Covered California will not feel the impact due to government subsidies, those who do not qualify will face the full burden of the premium hike, with some counties experiencing increases as high as 15.7%. Governor Gavin Newsom has allocated $165 million to help reduce co-pays and deductibles as part of ongoing efforts to lower healthcare costs in the state.
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