Projected Premium Hikes for Connecticut Residents as ACA Subsidies Expire in 2026

In early 2021, the U.S. Congress and President Biden enacted the American Rescue Plan Act (ARPA), significantly enhancing the premium subsidies provided under the Affordable Care Act (ACA). This expansion aimed to make healthcare coverage more affordable by increasing subsidies across the income spectrum from 100% to 400% of the Federal Poverty Level (FPL) and removing the previous 'Subsidy Cliff' at 400% FPL, which abruptly cut off assistance for households earning just above that threshold. The subsidy improvements were further extended by three years through the Inflation Reduction Act. However, these enhanced subsidies are scheduled to expire at the end of 2025. Given the current political landscape, with Republicans controlling the legislative agenda, it is unlikely these subsidies will be renewed. They had an opportunity to do so with the passage of H.R. 1, also known as the “Big Beautiful Bill,” but chose not to include continuation provisions. Additionally, the implementation of the “Affordability & Integrity Rule” by CMS under RFK Jr. and Dr. Oz is expected to reduce subsidy generosity and increase premiums starting in 2026. In Connecticut specifically, this combination ...