If you logged into your health insurance account recently and spotted significantly higher premiums, you’re not alone.
The enhanced federal subsidies that made Affordable Care Act plans more attainable for millions of Americans expired at the end of 2025, and the financial impact is immediate.
Congress has debated extending these tax credits for months, but there’s currently no resolution. For those relying on ACA marketplace coverage, this results in steep monthly price increases.
Because open enrollment ended Jan. 15, most Americans are now locked into these higher rates for the remainder of the year. The window to switch plans has closed for most, but depending on where you live, you might have a lifeline.
Some states anticipated this shortfall and have implemented solutions.
States with subsidy programs
According to CBS News, six states have ramped up their own subsidy programs to cushion the blow from expired federal credits: California, Colorado, Connecticut, Maryland, Massachusetts and New Mexico.
New Mexico has moved to fully offset the loss of federal tax credits for all residents, including recent immigrants. As a result, the state saw a 17% increase in enrollment for 2026 compared to the previous year.
California is focusing on enrollees earning up to 150% of the federal poverty level. While this won’t fully replace the estimated $2.5 billion the state is losing in federal assistance, it provides help for the lowest-income residents.
Colorado is offering ACA participants with income up to 400% of the federal poverty level an $80 monthly subsidy, plus an additional $29 for each family member on the plan.
Other states that offer subsidies include New Jersey, New York, Vermont and Washington.
Why your state might not offer the same help
States that want to offer their own direct subsidies to ACA enrollees need to operate their own health insurance exchange outside of HealthCare.gov. The federal enrollment portal isn’t built to calculate additional state-level tax credits.
Currently, 20 states run their own exchanges. In total, 10 states around the nation now offer subsidies that stack on top of whatever federal assistance remains available.
If you live in a state that uses the federal marketplace, your state could theoretically still offer ACA subsidies through a different mechanism, but the options become more limited and complicated.
What you can do now
Whether your state offers additional help or not, there are steps you can take to manage rising premium costs.
- Check your Medicaid eligibility. Income thresholds vary by state, and some people who previously earned too much may now qualify, especially if their financial situation has changed.
- Look into short-term health insurance with caution. These plans are cheaper but offer far fewer protections and often exclude pre-existing conditions. They’re a stopgap, not a solution.
Your pre-enrollment checklist for next year
Before the next open enrollment, which starts Nov. 1, here’s how to prepare:
- Verify whether your state operates its own exchange or uses HealthCare.gov.
- Research whether your state offers any supplemental premium subsidies and who qualifies.
- Gather income documentation to ensure you receive accurate subsidy calculations.
- Compare at least three to five plans across different tiers.
- Factor in total annual costs, including premiums, deductibles and expected out-of-pocket expenses.
- Set a calendar reminder for when open enrollment begins in your state.
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