ACA Premiums Are Just Too Expensive – But These States Are Offering Help

If you recently logged into your health insurance account and saw extremely high premiums, you’re not alone.

Enhanced federal funding that made Affordable Care Act programs more affordable for millions of Americans expires at the end of 2025, and the financial impact is imminent.

Congress has debated extending these tax credits for months, but so far there is no solution. For those who rely on ACA marketplace coverage, this leads to monthly price increases.

Because open enrollment ended on Jan. 15, most Americans are now locked in at these high rates for the remainder of the year. The window to change plans is closed for most, but depending on where you live, you may have a health line.

Some states have anticipated this shortfall and are implementing solutions.

Countries with subsidy programs

According to CBS News, six states have combined their funding programs to reduce the impact on expired federal credits: California, Colorado, Connecticut, Maryland, Massachusetts and New Mexico.

New Mexico has moved to fully eliminate the loss of federal income tax credits for all residents, including recent immigrants. As a result, the state has seen a 17% increase in enrollment in 2026 compared to the previous year.

California focuses on enrollees earning up to 150% of the state poverty level. While this won’t fully replace the estimated $2.5 billion the state is losing in federal aid, it does provide relief to low-income residents.

Colorado provides ACA participants with income up to 400% of the federal poverty level a monthly subsidy of $80, plus an additional $29 for each family member in the program.

Other states that offer subsidies include New Jersey, New York, Vermont and Washington.

Why your situation may not offer the same help

States that want to offer their own direct subsidies to ACA enrollees are required to use their own health insurance system outside of HealthCare.gov. The federal registration portal is not designed to calculate state-level additional tax credits.

Currently, 20 states operate their own exchanges. In all, 10 states across the country now offer more funding than any federal aid currently available.

If you live in a state that uses the federal marketplace, your state can still provide ACA funding through a different method, but the options are becoming more and more complex.

What you can do now

Whether your state offers additional coverage or not, there are steps you can take to control rising premium costs.

• Check your Medicaid eligibility. Income limits vary by state, and some people who used to earn a lot may now qualify, especially if their financial situation has changed.
• Look at term health insurance carefully. These programs are cheap but offer very few protections and often do not cover pre-existing conditions. They are a stopgap, not a solution.

Your pre-registration list for next year

Before the next open enrollment, which starts Nov. 1, here is the preparation method:

• Confirm whether your state operates its own exchange or uses HealthCare.gov.
• Research whether your state offers any additional premium subsidies and who is eligible.
• Collect income documents to ensure you get accurate subsidy figures.
• Compare at least three to five programs in different categories.
• A factor in total costs for the year, including premiums, deductibles and expected out-of-pocket costs.
• Set a calendar reminder for when open enrollment begins in your state.