Thousands in CT face higher health insurance costs after federal subsidies expired at start of 2026

Jan. 3—With federal lawmakers unable to come to an agreement to extend COVID-era health insurance subsidies, thousands of Connecticut residents are expected to see higher costs beginning this month.

Despite ending the federal government shutdown with a promise to extend the subsidies under the Affordable Care Act, lawmakers' debates have failed, leading the subsidies to expire on Dec. 31.

More than 148,000 Connecticut residents are enrolled in qualified health plan coverage through Access Health CT — the state's health insurance market — for this year, representing a 3% increase in enrollment compared to the same period last year.

Enrollment in the Covered CT program, for which residents that meet specific eligibility requirements pay nothing, has grown 25% from last year.

"The Dec. 31 expiration of the federal enhanced premium tax credits will impact thousands of Connecticut residents," Access Health spokeswoman KaLyn McCullough said.

In preparation for the new year, Gov. Ned Lamont authorized $70 million in state funds to extend the subsidies for a year.

The funding is drawn from a broader $500 million state reserve set aside to address contingencies stemming from federal cuts and inaction.

The state's investment will save Connecticut residents money, but their health insurance costs will still increase significantly, McCullough said.

A single person with an annual income of $68,000 was paying $324 per month for their coverage last year and would have been paying $1,061 per month this year if it weren't for the state's $70 million contribution. However, they will now be paying $573 per month, McCullough said.

A couple with an annual income of $100,000 will see their coverage costs increase from about $505 per month to about $1,787 per month, and a family of four with an annual income of $134,000 will see an increase from $1,313 to $1,406, McCullough said.

The state's contribution is intended to be only a one-year fix and is not enough to cover the subsidies that Congress could have extended.

"We certainly hope that Congress gets it together and passes a subsidy," Lamont spokesman Rob Blanchard said, adding that the full difference from last year is closer to $120 million.

The total state subsidy amounts include the increased costs to the state for Covered CT due to the expiration of the enhanced ACA tax credits, and the funding will also pay for all of the expired tax credit amounts for consumers between 100% and 200% of the federal poverty level and not enrolled in Covered CT, McCullough said.

State funding will also replace half of the expired tax credit amounts for those with an income of more than 400% of the federal poverty level up to 500%.

"The important thing is that people have time to enroll right now," Blanchard said.

Access Health announced Friday that the final deadline to enroll in health or dental insurance for 2026 has been extended to Jan. 31. The original deadline was Jan. 15.

Those who enroll before the end of this month will have coverage starting Feb. 1. Customers can also renew their coverage during the enrollment period.

"We want all customers to understand their coverage options and to see if they qualify for help paying for their health insurance," Access Health CEO James Michel said. "This extension gives Connecticut residents a bit more time to do just that."

Customers can visit AccessHealthCT.com or call 1-855-805-4325 to sign up.

While retention in Access Health has remained strong, more than 18,000 people enrolled last year have not yet enrolled for 2026, McCullough said.

The number of Connecticut households receiving subsidies has dropped by 8.7% due primarily to the expiration of the enhanced federal subsidies and the return of the 400% federal poverty level cliff, McCullough said.

However, she added that those numbers do not yet reflect the state's investment.

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