Massachusetts has become the latest state to help residents pay for health insurance after enhanced premium tax credits under the Affordable Care Act expired.

The state announced last week that it will increase investment in its ConnectorCare program by $250 million, for a total of $600 million. As a result, approximately 270,000 customers enrolled in ConnectorCare and earning below 400% of the federal poverty level will see little to no premium increases because of the expiring federal credits, according to a news release from the governor’s office. Funding will come from the Commonwealth Care Trust Fund.

“While President Trump continues to increase health care costs, we are taking the strongest action in the nation to address them and keep costs as low as possible for families,” Democratic Gov. Maura Healey said. “While Washington raises costs, we are working hard to lower them -- it's why we capped health care deductibles and co-pays for the first time, as well as the cost of insulin and inhalers. We will continue to do all we can to make health care more affordable in this state.”

The governor’s office cited the example of a 45-year-old couple in Fall River, Mass., with two children and an annual income of $75,000. Because of the expired credits, they would have had to pay $452 a month for the lowest-cost Marketplace plan that cost $166 last year. Because of the new state funds, they instead will pay $266 monthly.

Healey has directed the Health Connector to sustain this increased investment while also exploring are other populations that may be brought into the reach of ConnectorCare’s help to lower health care costs for more people. Also, Healey’s direction, the Health Connector and MassHealth have been leading efforts to explore additional ways to prevent health coverage losses in Massachusetts.

Several other states also are taking action to help residents pay increased premiums:

  • New Mexico is replacing the expired subsidies with $17 million in enhanced premium and cost-sharing assistance for individuals and families purchasing coverage through the state’s exchange.
  • California is allocating $190 million to replace subsidies for individuals earning up to 165% of the federal poverty level in 2026.
  • Maryland state subsidies will replace the subsidies for people under 200% of the federal poverty level.
  • Colorado passed legislation to reduce premium increases through an allocation of up to $100 million in funds to stabilize its individual market.
  • Connecticut committed $70 million to offset the expiring subsidies for 2026. Individuals earning up to $56,000 and families of four earning up to $128,000 will see little to no change in costs. 
  • Arkansas, Texas and Wyoming Implemented “premium alignment,” a regulatory tactic that shifts costs to ensure remaining federal subsidies reach more people and keep out-of-pocket costs from rising.

NOT FOR REPRINT

© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.