Contra Costa County residents who buy health insurance through Covered California, including those in Walnut Creek, will pay an average of 8.3% more in 2027, the state exchange announced Wednesday, July 22, 2026.
The increase for Contra Costa County, which makes up Covered California's Rating Region 5, lands below the 9.9% statewide average and well under the 14% preliminary national median cited by Covered California. About 54,880 county residents are enrolled in Covered California plans as of March 2026.
Covered California Executive Director Jessica Altman blamed federal policy changes for driving costs higher. "The federal government and this administration have made it more difficult for hard-working Americans to access high-quality health insurance at a price they can actually afford," Altman said in the announcement. "The fallout from these federal actions continues to reduce affordability and put health insurance out of reach for too many."
The exchange attributed the rate hike to rising healthcare and pharmacy costs, the expiration of enhanced federal tax credits at the end of 2025, and what it described as federal actions including reduced eligibility for lawfully present immigrants, added paperwork burdens for families applying for financial help, and new barriers for gig workers.
State subsidies expanding
Gov. Gavin Newsom and the Legislature boosted the Covered California State Subsidy Program to $300 million from the Health Care Affordability Reserve Fund in 2026, up from $190 million the prior year. Californians earning up to 200% of the federal poverty level — $31,920 for an individual or $66,000 for a family of four — will qualify for state help lowering monthly premiums in 2027.
More than 500,000 enrollees statewide, roughly 30% of all Covered California members, are projected to receive a state subsidy. Nearly 200,000 can choose from two Silver-tier plans with a $0 premium.
Statewide, 60% of current enrollees will see no increase in their monthly premium thanks to existing federal tax credits and the expanded state program, according to Covered California.
Shop-and-switch option
Contra Costa enrollees who compare plans and switch to the lowest-cost option in their current metal tier could reduce their rate change by an average of 1.7 percentage points, according to Covered California data. That average does not guarantee individual savings.
Charles Bacchi, president and CEO of the California Association of Health Plans, said the 9.9% statewide average is lower than last year's 10.3% increase but attributed continued premium pressure to hospital and prescription drug costs, state health coverage mandates, and a $1.5 billion MCO tax signed into law this year.
What's next
The proposed rates are preliminary and subject to review and public comment by California's Department of Managed Health Care. Final rates take effect Wednesday, January 1, 2027. Current enrollees can review and switch plans beginning Thursday, October 1, 2026. Open enrollment for new applicants runs Saturday, November 1, 2026, through Saturday, January 31, 2027.
