Massachusetts will invest an additional $250 million to help residents pay for premium increases after ACA enhanced subsidies expired at the end of 2025.
The investment brings the state’s total commitment to its ConnectorCare program to $600 million, the largest state investment in marketplace subsidies to date. About 270,000 residents enrolled in ConnectorCare who earn below 400% of the federal poverty level will see little to no premium increases. The funding will cover residents making below $62,600 for an individual or $128,600 for a family of four, Gov. Maura Healey’s office said Jan. 8.
House lawmakers voted Jan. 8 to extend the subsidies for three years, though the extension is not expected to pass in the Senate. A bipartisan group of senators is working on draft legislation that would extend the subsidies for two years.
The Congressional Budget Office estimates about 4 million people will lose coverage without an extension. The annual premium for marketplace coverage is projected to rise from an average of $888 in 2025 to $1,904 in 2026 due to the expired subsidies, according to KFF.
Massachusetts joins a handful of states taking action to mitigate the impact.
