Which states offer their own health insurance subsidies?

Which states provide health insurance subsidies?

Ten states have state-funded subsidies available in addition to federal subsidies, with specifics that vary from one state to another:

• California: (Subsidy program was expanded in 2025) Additional cost-sharing reductions significantly reduce out-of-pocket costs for Silver-plan enrollees with household incomes up to 250% of the poverty level.¹ Under this program, which debuted in 2024, deductibles are eliminated for these enrollees and other out-of-pocket costs are reduced, utilizing funding generated by California's individual mandate penalty. (California previously had a fairly comprehensive premium subsidy program in 2020, but discontinued it once the American Rescue Plan’s federal subsidy enhancements became available.) For 2025, California allocated additional funding for the state subsidy program. As a result, all Covered California enrollees qualify for at least the Enhanced Silver 73 plan,² which has reduced out-of-pocket costs and no deductibles.³
• Colorado: (Subsidy program was scaled back in 2025) Additional cost-sharing reductions are available to adults with income up to 200% of the federal poverty level (FPL), as long as they select a Silver plan through the exchange.⁴ The state-funded cost-sharing reductions ensure that enrollees with income up to 200% FPL receive Silver plans with 94% actuarial value (under the ACA, the federal government provides this benefit only to applicants with income up to 150% FPL). This benefit became available in 2023, and was temporarily expanded in 2024 to be available to applicants with income up to 250% FPL.⁵ As of 2025, however, it reverted to an income limit of 200% FPL.
  Colorado also established a new platform that undocumented immigrants can use to enroll in coverage, with state-funded premium subsidies for up to 11,000 people with income up to 300% FPL.
• Connecticut: Additional premium subsidies and cost-sharing reductions are available to adults with income up to 175% of FPL, as long as they select a Silver plan through the exchange. The state subsidies then pay all of the remaining premiums and cost-sharing that are left after the federal subsidies are applied.⁶
• Maryland: Young adults, aged 18-37, with income up to 400% of FPL are eligible for additional premium subsidies. This had been scheduled to sunset at the end of 2023, but additional legislation (SB601 and HB814) extended that through 2025 (legislation that passed in Connecticut in early April 2025 – not yet signed into law as of mid-April – would remove the pilot program designation to make the subsidies permanent, and would also extend the upper age limit to 40⁷). In 2022 and 2023, the program was available to adults aged 18-34, but the age limit was then extended to 37.
• Massachusetts: Enrollees with incomes up to 500% of FPL are eligible for state premium subsidies and cost-sharing reductions (before 2024, the income limit was 300% of the poverty level).⁸ This program is called ConnectorCare.⁹
• New Jersey: Enrollees with incomes up to 600% of FPL are eligible for state-based premium subsidies.¹⁰ For 2025 coverage, 600% of FPL amounts to a single person earning up to $90,360 or a family of four earning up to $187,200.
• New Mexico: (Subsidy program was expanded in 2025) Enrollees with incomes up to 400% of FPL are eligible for state-funded premium subsidies, as well as additional cost-sharing reductions (SOPA, or state out-of-pocket assistance). The SOPA benefits expanded in 2025, so that plans with 90% actuarial value (platinum-level coverage) are available to applicants with household income up to 400% of the poverty level (this limit was previously 300%).¹¹ Plans with cost-sharing reductions in New Mexico are labeled “turquoise."
• New York: (Subsidy program debuted for 2025) Starting with the 2025 plan year, New York is offering state-funded cost-sharing reductions for Marketplace enrollees with income up to 400% of the federal poverty level, as well as additional cost-sharing reductions for diabetes management and for people who are pregnant or postpartum.¹²
• Vermont: Enrollees with incomes up to 300% of FPL are eligible for state-funded premium subsidies¹³ and cost-sharing reductions.¹⁴
• Washington: State-based premium subsidies (Cascade Care Savings) are available for enrollees with income up to 250% of FPL, as long as they select a standardized Silver or Gold plan through the exchange. Since 2024, undocumented immigrants have been eligible to enroll in coverage through Washington Healthplanfinder and qualify for Cascade Care Savings based on household income.
  

Will more states start to offer state-funded health insurance subsidies?

It's possible that more states might start to offer state-funded health insurance subsidies.

For example, Pennsylvania is working on a state subsidy program that could potentially be available for coverage effective in 2026. But funding for this was still uncertain as of March 2025.¹⁵

State-funded subsidies were actively being considered in Pennsylvania in 2024, with the Pennie Board of Directors recommending a sliding scale premium subsidy for gold and silver plans, for households earning between 151% and 300% of the federal poverty level.¹⁶

That is still the proposed solution, but the legislation necessary to authorize the state-funded affordability program stalled in the Senate after passing in the Pennsylvania House in 2024.¹⁷ In an August 2024 Pennie Board Meeting, it was clarified that because funding was not available for the 2025 plan year, the state-funded subsidy program would target a fall 2025 debut, to make coverage more affordable starting in 2026.¹⁸ As of March 2025, funding was still uncertain.

During the 2025 legislative session, lawmakers in some other states are considering legislation that would create state-funded health insurance subsidies. They include:

• Georgia¹⁹ (designed to mitigate the effect of federal subsidy enhancements sunsetting at the end of 2025)
• Maryland²⁰ (designed to temporarily – in 2026 and 2027 –mitigate the effect of the sunsetting of the federal subsidy enhancements)
• Minnesota²¹ (would replace existing reinsurance program with a new state subsidy program)
• Rhode Island²²
  

Which states provide other types of non-subsidy assistance with health coverage?

In addition to the state-funded premium subsidy and cost-sharing subsidy programs described above, some states use other approaches to make affordable health coverage more accessible for their residents:

• Three states (New York, Minnesota, and Oregon) have Basic Health Programs (BHPs). BHPs are not the same as additional state-funded subsidies, but they provide very comprehensive health coverage, with free or very low premiums, to residents with income up to 200% of FPL. And New York received federal permission to extend the eligibility limit to 250% of FPL, starting in April 2024.²⁶)
• Washington, DC provides Medicaid to adults with income up to 215% of FPL, which is well above the 138% limit that’s used in most states.
  

How can I tell if I'm eligible for state-funded health insurance subsidies?

Just like federal subsidies, eligibility for state-funded subsidies is typically based on how your household income compares with the federal poverty level (FPL). For 2025 coverage, states use 2024 FPL numbers. As noted above, the eligibility limits differ from one state to another, but this chart is a good reference that shows the incomes that correlate with various percentages of the 2024 FPL, depending on family size.

To get federal cost-sharing reductions, you have to select a Silver plan, and that’s also true of the state-funded cost-sharing reductions (as noted above, these plans are labeled "turquoise" in New Mexico). In most cases, state-funded premium subsidies can be used for plans at any metal level, although that’s not always the case. (For example, Connecticut’s program only applies to Silver-level plans, and it subsidizes both premiums and cost-sharing; Washington's state-funded subsidies are only available on certain Silver and Gold plans)

If my state offers state-funded health insurance subsidies, can I also get federal ACA subsidies?

Yes, if you’re eligible for federal subsidies you’ll receive them in addition to the state-funded subsidies. The state-based subsidies described above are designed to work in conjunction with the ACA’s federal subsidies. They provide additional benefits, resulting in lower premiums and/or lower cost-sharing amounts than you would have with just the federal subsidies.

But states can design their subsidy programs so they can be used even by people who aren’t eligible for federal subsidies. Examples are the Colorado and Washington programs that provide state-funded premium subsidies to undocumented immigrants, who are not eligible for federal subsidies.

Where can I get state-funded health insurance subsidies?

The states that provide state-funded subsidies all run their own exchange/marketplace platforms. If you’re in a state that offers state-funded health insurance subsidies, you’ll need to obtain your health coverage through the exchange to take advantage of the subsidies.

This is true for both state and federal subsidies, as subsidies are not available for off-exchange plans. (One caveat: Colorado uses a separate platform to provide state-subsidized coverage to a limited number of people who are undocumented immigrants and are thus not eligible to use the exchange.)

How much could I save on health insurance with state subsidies?

The savings from state-funded health insurance subsidies vary considerably from one state to another, but subsidies can run the gamut from zero-cost coverage and care (for example, Connecticut’s program for low-income enrollees) to shaving a small amount off the monthly premiums that a person has to pay (for example, New Mexico's program that subsidizes enrollees with income above 300% of FPL).

In most cases, the exact amount of the savings will vary depending on your income, age, and location. In each of the states that have their own subsidy programs, you can use the state-run exchange’s plan comparison tool to get an anonymous price quote that will include any available state-funded subsidies as well as federal subsidies.

Can I use a state subsidy to pay for Marketplace coverage?

Yes, if you’re in a state that offers state-funded subsidies and you meet the eligibility guidelines. As described above, each state that offers these subsidies has its own rules in terms of income limits and whether the subsidies apply to all Marketplace/exchange plans or only certain plans. (For example, Washington's state-funded subsidies are only available to offset costs for people who select standardized Silver or Gold plans).