Eleven states fund extra health insurance help after federal cuts

Health insurance costs will rise for many Americans in 2027, but residents of eleven states will see a smaller increase because their governments are adding state funds to federal subsidies. This extra money lowers monthly premiums for qualified buyers.

The participating states are California, Colorado, Connecticut, Maryland, Massachusetts, New Mexico, New Jersey, Rhode Island, Vermont, Virginia, and Washington. Most of these states continued programs they started in 2026. Rhode Island and Virginia are launching new programs for the first time in 2027.

The state action follows a sharp jump in prices after federal enhanced subsidies expired at the end of 2025. The nonpartisan group KFF reports that average ACA premiums hit $178 per month in 2026. That is a 58 percent increase from $113 in the prior year. National enrollment fell to 19.2 million people by February 2026, a drop of 13 percent.

State subsidies stack on top of existing federal tax credits. The amount of help and the income limits vary by state. Many programs target lower-income residents. Louise Norris, a health policy analyst at healthinsurance.org, said the efforts aim to make coverage affordable again for those who qualify.

California increased funding for its Covered California State Subsidy Program to $300 million in 2027. That is up from $190 million in 2026. The state legislature and Governor Gavin Newsom also expanded eligibility to include households earning up to 200 percent of the federal poverty level. The previous limit was 165 percent. This change should make about 200,000 more Californians eligible for help.

Massachusetts raised its support for enrollees to $620 million in 2027 from $600 million in 2026. State officials call this the largest state investment in the country. Washington offers smaller amounts. Residents with incomes up to 200 percent of the poverty line can get up to $35 per month. Those with incomes between 201 and 250 percent can get up to $20 per month.

New Mexico is the only state fully replacing the lost federal enhancements. The state saw a 14 percent increase in ACA enrollment in 2026. That growth contrasts with the national trend of declining coverage. In Colorado, Governor Jared Polis stated the state is stepping up to keep prices down and ensure access to care.