Governor Healy announced the Commonwealth will use the Commonwealth Care Trust Fund to replace federal enhanced premium tax credits that expired at the end of 2025, committing approximately $250,000,000 to preserve affordable coverage for ConnectorCare enrollees for the coming year.

The move, Healy said, will help an estimated 270,000 Massachusetts residents — including small business owners, seniors, individuals and families — remain insured through the ConnectorCare program. "We're gonna use this trust fund money to provide more financial support where the federal government has taken those subsidies away," she said.

Why it matters: Enhanced premium tax credits under the Affordable Care Act had been extended temporarily by the federal government in prior years. According to state officials, congressional and executive inaction left tens of millions of people nationwide facing higher premiums; Massachusetts officials said the state's investment will blunt those increases here.

Audrey Morse Gasteyer, executive director of the Massachusetts Health Connector, described ConnectorCare as a program that combines federal tax credits with state funding to lower premiums, eliminate deductibles for eligible enrollees, and expand access to no-cost services and prescriptions. "Connector care means not just having health insurance with premiums you can afford, but meaningful access to care and services without cost barriers," Gasteyer said. She said open enrollment for those not yet covered runs through Jan. 23 and urged eligible people to sign up.

Officials said the state's intervention is intended as a one-year response while urging federal action. When asked whether the help could continue beyond 2026, Healy said, "This is a one year plan right now. Right. You know, there's a new schedule that will get negotiated later, but, we're gonna do the very best we can with what we have right now."

Funding and scope: An administration official said the Commonwealth Care Trust Fund is expected to hold about $650,000,000 this year from a mix of revenue streams, including cigarette tax receipts (cited at roughly $65.7 million), employer penalties (about $40 million), an employer assessment (EMAC), and periodic state general fund contributions tied to federal financial participation. Officials described these numbers as approximate and subject to confirmation.

Officials also cautioned the state's action will not reach everyone affected by the federal lapse. Gasteyer estimated roughly 27,000 people who were above 400% of the federal poverty level qualified for federal tax credits in 2025 but do not qualify for ConnectorCare, and said older members of that group have experienced the steepest premium increases.

Practical details: The Health Connector will apply the state's support through existing processes; enrolled customers do not need to re-enroll, officials said. "So people are already seeing this help today," Gasteyer said, adding that those not enrolled have until Jan. 23 to sign up.

Next steps: State leaders said they are prepared to implement federal assistance immediately if Congress restores the enhanced credits, and they reiterated calls for federal action. The announcement followed remarks from legislative leaders endorsing the state's response and stressing the urgency of stabilizing coverage.

The briefing concluded with an invitation for questions; officials said the state's commitment is limited in scope and that additional policy work and negotiations will determine any future extensions beyond 2026.