Eleven states add ACA subsidies as premiums hit $178

Eleven states will fund extra health insurance subsidies for residents in 2027.

The participating states are California, Colorado, Connecticut, Maryland, Massachusetts, New Mexico, New Jersey, Rhode Island, Vermont, Virginia, and Washington. These programs layer state funds on top of existing federal tax credits to lower monthly costs. The initiative follows the expiration of enhanced federal subsidies at the end of 2025.

Average ACA premiums jumped 58% in 2026 to reach $178 per month, up from $113 the previous year, according to the Kaiser Family Foundation. National enrollment fell to 19.2 million people by February 2026, a 13% decline from the prior year. Rhode Island and Virginia are launching these subsidies for the first time in 2027, while other states are expanding eligibility or increasing funding.

New Mexico is the only state fully replacing the lost federal enhancements. It was also the only state to see enrollment rise in 2026, growing by 14% from 2025 levels. In California, lawmakers and Governor Gavin Newsom raised funding for the Covered California State Subsidy Program to $300 million for 2027. This is up from $190 million in 2026 and extends eligibility to households earning up to 200% of the federal poverty level.

Massachusetts increased its support for ACA enrollees to $620 million in 2027 from $600 million in the current year. State officials call this the largest state investment in the country. Washington offers more modest aid, providing up to $35 per month to residents with incomes up to 200% of the poverty line. Residents with incomes between 201% and 250% of that level receive up to $20 per month.

Most of these states operate their own marketplaces rather than using HealthCare.gov. Governor Jared Polis of Colorado said the state is stepping up to keep prices down and ensure residents maintain access to care. Louise Norris, a health policy analyst at healthinsurance.org, noted the efforts aim to make coverage more affordable for those who qualify.

Justin Lo, a senior researcher at KFF, observed that states with generous subsidies may see better retention of insured residents. He noted that states providing financial assistance experienced smaller drops in enrollment compared to those that did not.