Connecticut Reviews 2026 Health Insurance Rate Requests Amid ACA Subsidy Uncertainty

The Connecticut Insurance Department (CID) annually reviews health insurance rate requests for individual and small group fully insured plans to ensure rates are not excessive, inadequate, or unfairly discriminatory. This regulatory oversight is crucial as proposed premium increases for 2026 are notably higher, driven predominantly by potential changes to Affordable Care Act (ACA) subsidies. The expiration of enhanced federal premium tax credits, which were expanded during the COVID-19 pandemic and extended through the Inflation Reduction Act, threatens to increase premiums by an estimated 75% for ACA plan enrollees nationwide, including tens of thousands in Connecticut.

For 2026, CID has seen average insurer requests for rate hikes of 17.8% in individual plans and 13.1% in small group markets, with some filings citing subsidy expirations as justification for increases averaging 22.6%. Currently, approximately 90% of the 139,000 Access Health CT enrollees receive financial assistance from these subsidies, highlighting the potential for significant coverage loss or unaffordable premiums if federal support lapses.

In addition to subsidy concerns, recent federal legislative changes including the Marketplace Integrity Rule impose tighter enrollment restrictions, shorten enrollment periods, and introduce administrative barriers. Such changes could limit access to ACA plans and increase out-of-pocket expenses, reducing the overall value of coverage. This dynamic risks pushing more individuals to forgo insurance or delay care, potentially increasing reliance on emergency services and escalating uncompensated care costs for hospitals and providers.

The added financial pressure on the healthcare system may cause a ripple effect, resulting in elevated premiums for remaining insured patients and threatening hospital financial viability. Access to affordable health plans under the ACA remains critical for managing chronic conditions, preventing illness, and maintaining treatment for vulnerable populations. With record ACA marketplace enrollment levels nationwide, preserving subsidy extensions and regulatory support is essential to sustaining coverage progress.

While the majority of Americans hold employer-sponsored insurance, changes impacting ACA marketplace plans also affect those experiencing job transitions who rely on subsidized coverage as a safety net. These developments underscore the importance of Congressional action to extend premium tax credits and protect marketplace affordability. The regulatory decisions at the federal level will shape insurance market stability, healthcare access, and cost dynamics for years ahead.