Connecticut will shoulder the cost of some health insurance premiums next year, after the U.S. Senate again rejected a plan to extend the Affordable Care Act tax credits that expire at the end of the year.
Under the plan Gov. Ned Lamont detailed Thursday, the state hopes to curb sticker shock for some of its 100,000 residents who get coverage through the marketplace.
Lamont, a Democrat, said people earning up to $56,000 won’t see a change in their premiums, and there will be “little change” for families of four making up to $128,000.
Slightly higher earners will get some help, too.
“They will be paying a little more out of pocket due to the ending of the subsidies, but we'll be able to mitigate that a little bit, and I hope that makes a real difference,” Lamont said.
More information can be found through the Access Health CT marketplace, and health insurance brokers are also available to help. The deadline to apply for a health plan that begins Jan. 1, 2026 is Dec. 15. Residents who miss that deadline, but apply by Jan. 15, could still get coverage that begins Feb. 1.
The COVID-era tax credits have helped millions buy their own health insurance. Without them, four million people in the U.S. are projected to become uninsured by 2034 with premiums becoming unaffordable, according to the Center on Budget and Policy Priorities.
As the Associated Press reported, this latest stalemate in Congress on Thursday is another roadblock to the subsidies potentially continuing beyond 2025.
Connecticut’s plan draws $70 million from the $500 million emergency fund state lawmakers approved in the November special session.
“This is a one year fix that we'll be able to mitigate the pain coming out of the confusion in Washington,” Lamont said.
The ACA subsidies weren’t included in the Trump administration’s federal tax and spending bill that passed over the summer.
Congressional Democrats’ latest proposal would have extended the tax credits for three years. The Republicans’ plan sought to create new health savings accounts, a plan that also didn’t pass.
