Californians enrolled in Covered California are expected to face an average 9.9% increase in health insurance premiums in 2027, according to figures cited in a new statement from healthcare advocates.
The increase follows a 10.3% rise in premiums in 2026, adding to concerns about healthcare affordability for California families.
The statement attributed the latest increase to rising healthcare and prescription drug costs, along with federal cuts to healthcare funding and the expiration of enhanced Affordable Care Act tax credits.
The federal government has also announced that it will defer nearly $900 million in Medicaid payments to California, according to the statement.
The move is expected to create additional uncertainty for the state’s healthcare system and for Californians who rely on MediCal.
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Healthcare workers and labor organizations supporting Proposition 40, known as the California Billionaire Tax Act, are using the premium increase to renew calls for the measure.
Supporters say the proposal would impose a one-time tax on Californians with more than $1 billion in wealth and direct the resulting revenue toward healthcare and other public programs.
Debru Carthan, executive vice president of SEIU United Healthcare Workers West, said working families are bearing the impact of federal healthcare cuts and argued that Proposition 40 could provide additional funding for healthcare services.
“This is exactly what frontline healthcare workers have been raising the alarm about: working families are paying the price for Trump’s healthcare cuts that gave tax breaks to billionaires,” Carthan said. “We must pass Prop 40 to make billionaires pay their fair share in taxes – it’s the only way to stop millions of Californians from losing their healthcare coverage and seeing their hospitals and clinics close.”
According to a press release, the federal healthcare cuts could eliminate coverage for up to 3.4 million Californians and increase insurance premiums for millions more.
The statement also noted that clinics and hospitals across California have begun cutting services and jobs as providers respond to reduced funding.
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Proposition 40 has received support from a number of labor unions, healthcare organizations, community groups and elected officials, according to its supporters.
Those listed include U.S. Sen. Bernie Sanders, Rep. Ro Khanna, Rep. Judy Chu, the California Nurses Association, Teamsters California, AFSCME California, SEIU-UHW and several other organizations.
Supporters also cited a poll of likely 2026 California voters that found 57% supported Proposition 40, while 38% opposed it. The statement said the measure had a 19-point lead among those surveyed.
The proposal qualified for the November ballot after supporters submitted more than 1.6 million signatures, according to the statement.
Supporters say the measure would tax only Californians worth more than $1 billion and could raise about $100 billion for healthcare and other programs.
The statement emphasized the potential employment losses in California’s healthcare sector, along with the federal funding cuts that could result in the loss of up to 145,000 healthcare jobs and says 83 hospitals and clinics could be at risk of closure without additional revenue from Proposition 40.