Cost of Health Insurance in Connecticut Could Skyrocket If Congress Does Not Act

by James Michel

Some Connecticut families could see an increase of $3,000 per year for health coverage if legislation is not passed soon. Enhanced subsidies created through the 2021 American Rescue Plan Act (ARPA) and extended through the 2022 Inflation Reduction Act (IRA) have made health insurance coverage more affordable and accessible for millions of Americans enrolled in federal or state-based marketplaces like Access Health CT (AHCT).

Reducing the rate of the uninsured is a critical part of AHCT’s mission, and these subsidies have played an important role in cutting the state’s uninsured rate in half and bettering the health of thousands of people.

This financial help has led to record-breaking enrollment in Connecticut. AHCT enrolled a total of 151,151 residents in Qualified Health Plans (QHPs) for Plan Year 2025, exceeding last year’s record of 129,000 people. Because of the enhanced subsidies, 90% of Connecticut residents enrolled in a QHP get financial help, for a total of $91,460,464 each month.

Unfortunately, the enhanced subsidies are set to expire at the end of this year. This will impact everyone. Many Americans, including tens of thousands of Connecticutresidents, will see their health coverage costs dramatically increase if Congress does not act to extend or make these enhanced subsidies permanent. Many could be left without healthcare coverage at all.

As healthier-than-average people exit the marketplaces if the enhanced subsidies are no longer available, insurers will raise premiums for the remaining enrollees. In addition, hospitals will continue to treat those who are uninsured and unable to pay, further increasing uncompensated hospital costs. Those costs are then passed along to consumers.

These enhanced subsidies substantially increase the amount of financial help AHCT customers can receive and expand that help to people who were previously ineligible. According to the Centers for Medicare & Medicaid Services (CMS), the uninsured rate in the United States is at an all-time low because of this increased financial help. And if the subsidies do expire, the Congressional Budget Office expects nearly four million Americans will lose their insurance by 2034, leading to a sicker country overall.

If the enhanced subsidies are not extended past Plan Year 2025, Connecticut residents could expect to pay $1,527 more on average per year for their health insurance. Some residents will see a nearly $3,000 increase per year. This will be catastrophic for many families in our state.

Connecticut is fortunate to have strong advocates at the legislative level who have championed increasing access to health coverage and making it more affordable. Our state leadership has also shown strong support for the enhanced subsidies that benefit so many.

We hope the Connecticut delegation in Washington D.C. will continue to advocate for the extension of these subsidies and encourage others from across the country to join them in support of all Americans. We must do all we can to protect families from being unable to afford health insurance or we will see a dramatic decrease in the overall quality of health in our state.

Access Health CT is committed to helping keep our customers healthy in any way we can.

James Michel is Chief Executive Officer of Access Health CT