Health Connector Federal Policy Updates
The federal government recently passed a budget reconciliation bill on July 4, 2025. As a result, many Health Connector members will see increases in the cost of their health insurance or changes in their eligibility, access to coverage, or the amount of financial help they’re able to receive.
For Plan Year 2026, there are two major changes made by the federal government that will impact the ConnectorCare program:
Plan Type 1 coverage will be eliminated.
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- Individuals and Families with incomes up to 100 percent of the federal poverty level are no longer eligible for advance premium tax credits (APTCs) starting on January 1, 2026, due to changes made by the federal government.
- Individuals who expect to earn up to $15,650 and $32,150 for a family of four in 2026 will no longer be eligible for ConnectorCare.
- Members may be eligible for unsubsidized coverage.
- This federal change is specific to the Health Connector and does not change a member’s eligibility for MassHealth Limited or the Health Safety Net.
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Plan Type 3D will be eliminated, if Congress does not act to continue the enhanced federal tax credits.
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- The current federal enhanced APTCs expire at the end of 2025. If Congress does not extend them, Plan Type 3D will be eliminated.
- ConnectorCare plan eligibility is based upon eligibility for APTCs. If these enhanced APTCs do not continue, APTCs will only be available for individuals earning up to 400 percent of the federal poverty level and members in Plan Type 3D will lose eligibility for ConnectorCare.
- Members will also lose access to APTCs and may be eligible for unsubsidized coverage, but will experience higher premiums, co-pays, and deductibles.
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Both of these federal changes mean that the ConnectorCare program will only be available for those individuals and families with income between 100 and 400 percent of the federal poverty level for Plan Year 2026.
The Health Connector will have a new webpage dedicated to helping members stay informed about the impacts of federal policy changes. Please visit MAhealthconnector.org for updates.
Working with Members: How to Help
Impacted members will be receiving email communications from the Health Connector beginning at the end of this week that provides information about these federal changes.
When working with these members, please explain that these changes will take effect in January of 2026. As always, work with members to review their application and make updates as needed to their income, reporting any income increases or decreases. Explain the impacts of changes to their immigration status, or their household size, including reporting a pregnancy or other health status change.
Health Connector