Eleven States Boost Health Insurance Subsidies for 2027

Eleven states will provide extra financial help to residents buying health insurance in 2027.

The move aims to lower monthly costs after federal subsidies expired at the end of 2025. Average premiums jumped 58 percent in 2026, rising from $113 to $178 per month, according to KFF. National enrollment fell 13 percent to 19.2 million people by February 2026.

Nine states are continuing programs they started in 2026, while Rhode Island and Virginia are launching theirs for the first time. California has widened its rules to include more people. Health policy analysts say these steps may stop coverage from falling further, a key issue for voters in recent midterms.

These state funds add to the existing federal tax credits that remain in place. The amount of help and who qualifies differ by state, with many targeting lower-income groups. Louise Norris, a health policy analyst at healthinsurance.org, said the goal is to make coverage affordable again for those who qualify.

Most of these states run their own marketplaces instead of using HealthCare.gov. They are largely Democratic, and officials point to the end of federal aid as the main reason for acting. Colorado Governor Jared Polis said the state is acting to keep prices down so residents can keep their care.

New Mexico is the only state fully replacing the lost federal subsidies for 2027. That approach led to a 14 percent increase in enrollment in 2026, the only gain in the country. In California, the state raised its subsidy fund to $300 million for 2027, up from $190 million. This change allows households earning up to 200 percent of the poverty level to get help, an increase from 165 percent. About 200,000 more Californians will qualify as a result.

Massachusetts is increasing its support to $620 million in 2027, up from $600 million, which officials call the largest state investment in the country. Washington offers up to $35 per month to those earning up to 200 percent of the poverty line, and up to $20 per month to those earning between 201 and 250 percent. KFF researcher Justin Lo noted that states with this help saw smaller drops in enrollment, though he said long-term success depends on state budgets.