In Plain Benefits
January 19, 2026
1) Intro: What changed
If you opened your Marketplace premium for 2026 and did a double-take, you’re not alone.
The enhanced ACA premium tax credits expired at the end of 2025. For a lot of families, that “discount” disappearing is the whole story: same plan, bigger bill.
2) The problem: 2025 vs. 2026 reality
Two things are happening at once:
- The federal enhanced credits are gone
- Base premiums also moved up, so the new starting point is higher
End result: many people are paying hundreds more per month than they paid in 2025.
3) The $250M fix: Massachusetts steps in
Massachusetts didn’t wait for Washington. The state added $250 million to support ConnectorCare, basically trying to keep coverage from becoming unaffordable for residents who qualify.
It’s not “free insurance.” It’s the state using money to blunt the increase caused by the federal credits expiring.
4) The math: Fall River couple example
A 45-year-old couple in Fall River with two kids and $75,000 household income:
| Scenario | Monthly Premium |
|---|---|
| 2025 (with enhanced credits) | $166 |
| 2026 (without state help) | $452 |
| 2026 (with ConnectorCare funding) | $266 |
Still higher than 2025. Just not nearly triple.
5) Other states (briefly)
Massachusetts isn’t alone. Other states using state dollars in different ways include:
- New Mexico
- California
- Colorado
- Maryland
- Connecticut
The details vary by state (income limits, how the subsidy is applied, and who qualifies), but the theme is the same: state money filling a federal gap.
6) The takeaway
This is a band-aid, not a cure.
If you’re an employer, this still matters because individual-market shocks don’t stay contained. Employees may have spouses or dependents on Marketplace plans, and when those costs spike, the pressure tends to spill back into employer benefits conversations.
When it gets complicated, we make it simple.
Making Complicated Simple.
