Connecticut Insurance Commissioner Andrew Mais has announced that the state's insurance department has rejected all initial 2026 rate requests from health insurers for fully insured individual and small group plans.
The decision, which follows a months-long actuarial review, will save consumers about $125 million next year, according to the statement.
The Department cut back requests from seven insurers across eight plans, limiting average increases to 16.8% for individual plans and 11% for small group plans. Insurers had initially sought hikes of 23.3% and 13.1%, respectively.
In addition, the Department capped insurer profits at 0.95% of premium dollars, underscoring its focus on affordability. In the past three years, Connecticut regulators have saved consumers a combined $267 million through similar interventions.
Mais (pictured above) said the department’s commitment to protecting consumers remains steadfast amid ongoing federal uncertainty. “All of us – regulators, consumers, and industry – have faced unprecedented uncertainty this year due to the federal government’s pending changes to health care coverage,” he said.
Insurers had justified their filings by pointing to 6% to 10% increases in medical costs, 9% to 15% growth in pharmacy costs and heightened demand for medical services. These trends have put pressure on insurers' bottom lines, but regulators said they found the requested hikes excessive given the burden on consumers.
The 240,000 Connecticut residents covered under Affordable Care Act (ACA)-compliant plans marketed on and off the state exchange, Access Health CT, will be directly impacted. Self-funded employer plans, which cover most people in the state, remain under federal oversight.
The rate-setting process this year was heavily influenced by concerns over whether enhanced federal subsidies for ACA enrollees will be renewed. Mais highlighted that nationwide requests for 2026 are the highest since 2018, with a median proposed increase of 18%, nearly triple that of recent years.
Without subsidies, ACA consumers could see average premium hikes of 75%, a prospect that would affect roughly 139,000 Connecticut residents who currently rely on financial assistance to afford coverage.
“If Congress does not reauthorize these subsidies, more than 139,000 Connecticut residents could face significant premium cost increases, and could lose access to coverage,” Mais warned.
The debate around ACA subsidies extends beyond Connecticut. A Georgetown University Center for Health Insurance Research study noted that ACA Marketplace enrollment doubled between 2020 and 2025, reaching 24 million people. If subsidies lapse, the Congressional Budget Office estimates 4.2 million Americans could lose insurance coverage.
Open enrollment for 2026 plans begins November 1, 2025. The Insurance Department said it will continue monitoring medical cost trends and federal policy decisions closely as it prepares for the new coverage year.
