Connecticut Insurance Department Reviews 2026 Health Insurance Rate Requests Amid ACA Subsidy Uncertainty
The Connecticut Insurance Department (CID) conducts an annual review of proposed health insurance rate increases for individual and small group fully insured plans. This regulatory process ensures that rates are not excessive, inadequate, or discriminatory and directly impacts premiums for plans sold both on and off the Access Health CT exchange. For 2026, CID received rate increase requests averaging 17.8% for individual plans and 13.1% for small group plans, reflecting broader national trends of rising health insurance premiums.
Key drivers behind these rate hikes include the potential expiration of enhanced federal subsidies under the Affordable Care Act (ACA), which currently assist about 90% of Access Health CT enrollees. These premium tax credits, expanded during the COVID-19 pandemic and extended through the Inflation Reduction Act, may expire after the 2025 plan year unless renewed by Congress. Without these subsidies, premium increases could reach an estimated 75% for average ACA enrollees, potentially making coverage unaffordable for tens of thousands of Connecticut residents.
In addition to subsidy expirations, recently enacted federal rules impose restrictions such as shorter open enrollment periods, elimination of assistance for certain non-citizen groups, removal of special enrollment periods for low-income individuals, and more stringent verification requirements. These changes add administrative and financial burdens that could reduce enrollment and coverage continuity, and they may result in higher out-of-pocket costs and narrower coverage scopes.
The potential reduction in coverage could also have systemic impacts on the health care market. Increased numbers of uninsured individuals may lead to greater reliance on emergency care, increasing uncompensated care costs for hospitals and providers. This dynamic can place financial strains on the health care system, drive up premiums for insured populations, and threaten hospital viability and access to care.
The ACA's original goal of expanding access to affordable coverage is at a crossroads, with nearly 24 million enrollees nationwide in 2025 facing uncertain futures. While most Americans have employer-sponsored insurance, the ACA marketplace serves as a critical safety net for those who lose employer coverage or require expanded protections due to pre-existing conditions or ongoing treatment. Legislative decisions in Washington regarding the continuation of subsidies and other ACA provisions will significantly influence health insurance affordability and access in the coming years.