State offers child care workers up to $1,200 a year for health coverage

In a time of rising health insurance costs, thousands of Connecticut early childhood educators will be eligible for a new state subsidy worth up to $1,200 a year to help pay for coverage purchased through the Affordable Care Act marketplace.

The benefit, available for 2027 health plans, is funded through the state's Early Childhood Education Endowment, a long-term investment intended to strengthen Connecticut's child care system by improving affordability, expanding access and supporting the workforce.

"Over these last couple of years, we've enacted measures in Connecticut that are growing early childhood education programs at historic rates, and we want to encourage more workers to seek careers in this important profession," Gov. Ned Lamont said in a statement. "By creating this health care incentive, we can help get more people covered while also supporting educators and the growth of this critical workforce."

Here's what to know.

How much is the subsidy?

Eligible educators can receive an additional $1,000 to $1,200 a year to help cover health insurance premiums. The amount depends on household income, and the subsidy is paid directly each month to the insurance carrier.

The benefit can be combined with other financial assistance available through Access Health CT.

Who is eligible?

The subsidy is available to educators who work at licensed child care centers, group child care homes or family child care homes and are registered with the Connecticut Early Childhood Professional Registry.

The assistance applies to plans purchased during Access Health CT's open enrollment period, which runs from Oct. 23 through Jan. 15.

Eligible plans include:

Individual health plans

Employer-sponsored small-group plans

CHOICE Arrangements, also known as Individual Coverage Health Reimbursement Arrangements, offered through employers

Access Health CT estimates 7,200 to 8,000 early childhood educators will qualify.

The subsidy is a "much-needed" investment and one part of a broader effort to improve recruitment, retention and the long-term health of the workforce, said Elena Trueworthy, commissioner of the Office of Early Childhood and co-chair of the endowment's advisory board.

"With this subsidy, early childhood staff can better afford the cost of health insurance so they get the health care they need," Trueworthy said in a statement.

How is it funded?

Connecticut lawmakers created the Early Childhood Education Endowment in 2025 as a permanent funding source to address longstanding challenges facing the state's child care system, including high costs, limited availability and persistent workforce shortages.

Since then, lawmakers have directed more than $700 million in state surplus funds into the endowment to support initiatives aimed at improving affordability, access, quality and workforce stability over the coming years.

State officials say the endowment has already helped:

Create up to 1,000 new child care spaces

Fund an 8% increase in provider reimbursement rates through Early Start CT

Launch programs that will eventually provide some families with free or reduced-cost child care beginning in fiscal 2028

Earlier this summer, the advisory board approved about $10 million to create the new health insurance subsidy.

The investment comes as many early childhood workers continue to struggle with health coverage. About 18% of Connecticut's 31,000 early childhood educators are uninsured, according to a 2026 analysis by health care consulting firm Wakely. Another 17% of insured educators receive coverage through Access Health CT.

The new insurance support can help ease some of the burden" educators face, said

State Rep. Kate Farrar, a chair of the endowment's advisory group, said the new insurance support can help ease some of the burden educators face.

"Investing in educators strengthens our early childhood system and helps ensure families have access to the care they need," Farrar said in a news release.

The Office of Early Childhood will decide whether to continue funding the subsidy beyond 2027 as part of future endowment planning.

What other financial help is available?

Many Connecticut residents continue to qualify for premium assistance through Access Health CT even after enhanced federal COVID-era subsidies expired last year. According to Access Health CT, more than 79% of marketplace enrollees received financial assistance during the 2026 open enrollment period.

The Lamont administration has also introduced a new incentive aimed at expanding employer-sponsored coverage.

Small businesses with 50 or fewer employees can receive a state tax credit of up to $1,000 per employee annually if they offer workers a CHOICE Arrangement through Access Health CT. The credit is available for the first two consecutive years the plan is offered.

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