Connecticut weighs enrollment extension as ACA subsidy lapse spikes premiums

Connecticut officials said Thursday they are considering extending the state’s 2026 Affordable Care Act open enrollment deadline by one to two months, citing ongoing uncertainty over whether Congress will revive enhanced premium subsidies that lapsed Dec. 31. Access Health CT CEO James Michel said the marketplace is in discussions with carriers about pushing the final deadline — currently Jan. 31 — into February or March if federal action comes in the next few weeks.

“One of the potential changes out there is what the feds are doing. If they do something within the next week or two — in terms of extending the subsidies — then we may have to look at extending (open enrollment) beyond February and March,” Michel said at a Monday press conference alongside Gov. Ned Lamont and Interim Insurance Commissioner Josh Hershman. “We want our customers to come back in, shop, and maybe buy something with more coverage because they will have more subsidy available for them to repurchase.”

Connecticut is among a small number of states — including Maryland, California, and New Mexico — that have committed state funds to offset part of the federal subsidy loss. Lamont announced $70 million in state relief for 2026 drawn from a $500 million emergency response fund created during a special legislative session to address federal cuts, with additional funding planned for 2027.

Enrollment rises despite higher costs

Despite the higher premiums, Connecticut enrollment increased. As of Jan. 2, roughly 150,000 state residents had signed up for 2026 ACA plans — about 3 to 5 percent above the same point last year, Michel said.

The pandemic-era enhanced subsidies had been in place since 2021. Renewal of the ACA tax credits was a central Democratic demand during last year’s government shutdown, but legislators who brokered a deal to reopen the federal government secured only a promise of a vote, not a guaranteed extension.

How the state fund works

Nearly $51 million of Connecticut’s commitment will fully replace the federal subsidy for residents earning between 100% and 200% of the Federal Poverty Level. The state will cover half of the financial assistance for those earning between 400% and 500% of FPL — a group that loses all federal assistance under the lapse.

The plan will also maintain CoveredCT — the no-cost program for low-income families that earn slightly too much to qualify for Medicaid — through June 2027.

“The consumers in Connecticut that are most vulnerable and in the lowest income class should be made entirely whole based on the gap that was created from the non-extension of the federal subsidies,” Hershman said.

Lamont acknowledged the fund does not cover everyone.

“We’re not going to be able to make up all of the federal shortfall forever,” Lamont said. “You’re probably going to see your rates stay the same or even go down for everybody earning up to about $160,000 a year.”

Who gets relief — and who doesn’t

For Malaine Trecoske, 64, of Branford, the stakes are immediate. She works part-time at a small retail shop and has a year to go before Medicare eligibility. Without the enhanced federal subsidy, she and her 63-year-old husband would need to pay $42,000 a year to remain on their silver plan.

Connecticut’s state relief — covering roughly half the subsidy for households at 400% to 500% of the Federal Poverty Level — could reduce what her family owes to approximately $21,000 for the year, if they remain within that income range, Trecoske said. She spoke at a virtual press conference Wednesday hosted by U.S. Rep. Rosa DeLauro, D-3rd District.

“For us, regardless, it’s a big amount,” Trecoske said.

Stephanie Saujon, a self-employed photographer in Stratford who has run her business for 18 years, faces an increase of about $1,000 a month in health care premiums. Because her income exceeds the eligibility threshold, she will not receive state relief. She said she and her husband have to “shuffle things around and budget to afford these premiums,” and that the spike “is really not sustainable,” particularly given a chronic illness.

Congressional outlook remains uncertain

The fate of the expired tax credits remains in flux. Democrats’ push for a three-year extension failed to advance in a key Senate vote last month. House Speaker Mike Johnson, R-La., said he would not take up such a bill.

Using a procedural tool called a discharge petition, all House Democrats plus four Republicans — 218 signatures — forced a floor vote on the three-year extension. The House was expected to take a procedural vote Wednesday afternoon, with final passage scheduled for Thursday. The Senate has signaled it is unlikely to act after already blocking the measure.

That standoff has put pressure on bipartisan Senate groups seeking a compromise. One potential deal would extend the tax credits for two years and impose income caps, according to Politico.

DeLauro said she would support a shorter extension to generate Senate movement but expressed hope that Thursday’s House vote would pressure GOP senators to reconsider.

“This pressure has got to come from public outcry,” DeLauro said. “If the subsidies expire and cuts remain in place, we’re in the midst of our people in Connecticut … living through a cost-of-living crisis.”

Lamont said the state will keep responding to federal policy shifts.

“We’re trying to do everything we can with the changing landscape down in Washington,” he said.