States Increase ACA Subsidies as Federal Tax Credits End

Six states—California, Colorado, Connecticut, Maryland, Massachusetts, and New Mexico—are increasing state-funded subsidies for Affordable Care Act (ACA) plans to mitigate higher premiums following a lapse in federal funding. With federal tax credits expiring, New Mexico fully offsets the loss, resulting in a 17% enrollment increase for 2026. Other states, like California and Colorado, provide targeted assistance based on income levels. The ongoing debate in Congress over federal tax credits continues to impact ACA enrollment nationwide.

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