Issue Briefs | Mar 27, 2026

State Marketplace Subsidies to Support Health Insurance Affordability

Jason Levitis, Claire O’Brien, Caitlin Rowley Gallamore, and Rachael Totz, the Urban Institute

As states seek to make health insurance more affordable, State-Based Marketplace subsidies are a potential solution to help Marketplace consumers pay for coverage. This issue brief explores reasons states consider subsidies, design options, and state action to date. This resource is for state policymakers considering whether to create a subsidy and how to structure it.