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Covered California projects enrollment declines and budget tightening after federal changes
Assembly Budget Subcommittee on Health · April 20, 2026
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Summary
Covered California staff told lawmakers they expect enrollment to drop after expiration of enhanced subsidies and HR1 rule changes, project a preliminary 2026 budget near $481 million and plan monitoring and participation‑fee adjustments to maintain solvency.
Covered California deputies Kathleen Webb and Jim Watkins told the subcommittee that federal changes under HR1 and the end of enhanced premium tax credits led to substantial uncertainty for the exchange.
Watkins said preliminary planning projects enrollment declines (an estimated 11% drop in FY 2026) and…
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