Increase in ACA Coverage Losses in Connecticut Amid Federal Aid Cuts

In the first half of 2026, over 22,000 individuals in Connecticut who enrolled in Affordable Care Act (ACA) health plans lost their coverage due to unpaid premiums. This represents a 75% increase from the previous year, according to figures from Access Health CT. The rise in coverage termination follows the conclusion of temporary federal subsidies introduced during the COVID-19 pandemic, which had assisted millions, including approximately 143,000 residents of Connecticut, in affording health insurance.

Despite the uptick in nonpayment, total ACA enrollment in Connecticut remained stable. As of June 2026, about 151,300 state residents were participating in Access Health plans, compared to roughly 155,500 the previous year, indicating a decline of around 4,200 enrollees. The ACA enables individuals earning 100% to 400% of the federal poverty level to qualify for financial aid when buying insurance through state exchanges like Access Health CT.

During the pandemic, enhanced subsidies were extended, allowing eligibility beyond 400% of the poverty level by capping benchmark plan costs at 8.5% of annual income. However, these expanded subsidies concluded last year. In response to subsidy reductions, Gov. Ned Lamont allocated approximately $115 million from an emergency fund to support low-income enrollees in Connecticut. The state's legislature created this fund, drawing from $500 million in state reserves.

Connecticut, along with Maryland, California, and New Mexico, implemented state-level subsidies to counter the loss of federal financial aid. Susan Rich-Bye, Access Health CT’s Director of Legal and Government Affairs, noted that losing an ACA plan doesn't always result in being uninsured. A survey showed 63% of former enrollees secured alternative coverage, such as employer-sponsored or government plans, while the rest remained uninsured.

House Minority Leader Vincent Candelora remarked that subsidy changes might motivate some businesses that previously supported exchange enrollment to revert to offering direct employee coverage. While he endorsed the state’s emergency response fund, he criticized the reliance on state funds to offset federal policy changes. Despite additional state subsidies, average premium costs rose by 14% for individuals and 21% for families of four.

These subsidies were a one-time expense, with the current budget lacking provisions for future subsidies, though it directs the governor to devise a new subsidy plan for 2027. Sen. Matt Lesser anticipates that financial support will persist for eligible residents next year, stressing the expectation for the governor to set these plans in motion. A representative for Gov. Lamont was unavailable for comments at the time of publication.