Enhanced Affordable Care Act (ACA) premium tax credits have ended, and that could impact your employees in 2026.
For the past few years, enhanced federal subsidies helped many individuals afford coverage through the Individual & Family Plan (IFP) marketplace. (In California, that meant puying coverage through Covered California.) With the ACA’s enhanced subsidies expiring, some employees may now face higher monthly premiums for individual health insurance coverage.
So what does that mean for small business owners? It may mean more employees looking to enroll, or re-enroll, in employer-sponsored group health insurance.
Why Employees May Turn to Employer Coverage in 2026
Without enhanced ACA tax credits:
- Some employees may find individual premiums significantly higher
- Others may no longer qualify for financial assistance
- Employees may seek more predictable costs and broader provider networks
- Workers may value the stability of employer-sponsored benefits
If you offer a small business group health plan, or are considering offering one, this shift could increase interest in your employee benefits package. Now is the time to evaluate whether your current health insurance offering is competitive, affordable, and flexible.
A Smart Solution for Small Business Health Insurance in California
With CaliforniaChoice, you get a simplified, flexible approach to small business health insurance. Designed specifically for California small businesses, you’ve chosen a program that allows you to control your costs while offering employees meaningful choice. That’s important in today’s environment.
A Reminder of What Makes CaliforniaChoice Different?
1. Multiple Plan Types
Offer HMOs, PPOs, and HSA-qualified high-deductible health plans all in one program.
2. Seven Health Plans, 100+ Coverage Options
Employees can choose from seven leading health plans across the state, giving them access to broad provider networks, doctors, specialists, and hospitals.
3. Defined Contribution = Budget Control
You decide how much to contribute toward employees’ premiums. This helps protect your budget while still offering competitive benefits.
4. Total Choice Flexibility
With CaliforniaChoice, you can offer coverage in Single, Double, or Triple Choice options — or Total Choice with options in all four ACA metal tiers (Bronze, Silver, Gold, Platinum).
Employees can select the coverage level that best fits their health care needs and budget — without increasing administrative work for you.
5. Optional Ancillary Benefits
Bundle additional benefits such as:
- Dental
- Vision
- Chiropractic
- Life and AD&D
6. Value-Added Employer Services
As a CaliforniaChoice group, you also receive:
- A free Premium Only Plan (POP)
- Flexible Spending Account (FSA) setup
- COBRA administration
- Discounts and additional employer resources
7. Simplified Administration
One monthly bill. One point of contact for service. One website to manage your employee benefits.
Why Offering Group Health Insurance Matters More Now
As individual market costs fluctuate, employer-sponsored health insurance becomes even more valuable for recruitment and retention. For small businesses like yours, offering group health coverage can:
- Improve employee satisfaction and loyalty
- Help attract competitive talent
- Provide tax advantages
- Deliver cost predictability through Defined Contribution
If enhanced ACA subsidies ending creates uncertainty in the individual market, offering a strong group health plan can provide stability for you, your business, and your employees.
Get an Updated Small Business Health Insurance Quote
If you haven’t reviewed your group health coverage recently, now is a good time.
Talk with your employee benefits broker about getting an updated CaliforniaChoice quote for 2026. If you want to find a new broker, we can connect you with a licensed benefits professional who specializes in small business health insurance in California.
In changing times, flexibility and cost control matter more than ever. CaliforniaChoice gives your business both without adding administrative complexity.