A friend without company insurance almost gave up last year while looking for coverage through Maryland Health Connection. They thought the premiums were too high just by looking at the price screen.

However, when they entered their income and age correctly and recalculated, the amount changed significantly. Maryland has a state subsidy specifically for young adults.

Open enrollment for 2027 starts on November 1, so today I will summarize this program as simply as possible.

The name is Young Adult Subsidy, which translates to health insurance subsidies for young adults. It started as a pilot program in 2022, initially available only to those up to 34 years old.

Now, the eligibility has expanded to those aged 18 to 37. Additionally, with the passage of HB297 by the state legislature in 2025, there is no longer a deadline, making it a permanent program.

Honestly, I was glad about this part. There were concerns that this might be the last year for the program, but now we can worry a little less about that.

The eligibility criteria are simpler than expected. You must be a Maryland resident and enroll in insurance through Maryland Health Connection.

Your income should be between 138% and 400% of the federal poverty level (FPL). Those who qualify for Medicaid are not eligible for this subsidy.

The key point is that this is an additional layer of funding on top of federal assistance. First, the federal premium tax credit is calculated, and then the state government further reduces the premium.

It operates on a sliding scale, meaning that younger individuals with lower incomes receive more support. As you approach your late 30s, the support gradually decreases.

This means that even with the same income, the results can differ between someone in their mid-20s and someone in their late 30s. This is why you shouldn't assume your situation is similar just by looking at someone else's estimate.

This year, the situation was a bit more complicated. With the expiration of enhanced federal subsidies at the end of 2025, many people's premiums increased.

As a result, Maryland expanded the eligibility for state subsidies starting in 2026 to include participants with incomes below 400% of the FPL, regardless of age. Low-income individuals receive full support for the reduced federal assistance, while those in the 250% to 400% income range receive half.

Here, those aged 18-37 can also receive the Young Adult Subsidy on top of that. You can think of it as a structure where young people receive the most substantial support.

According to the Maryland Insurance Administration (MIA), the state plans to continue this support into 2027. However, the exact amount will depend on various factors, so it's best to check directly when enrolling.

What's concerning is the premiums themselves. According to the insurance administration's June report on the 2027 individual insurance rate applications, there was an average increase of 13.7%.

This is based on the gross price before subsidies are applied. The insurance administration states that nearly 70% of people purchasing plans on the exchange receive subsidies, so there's no need to panic just by looking at the gross price.

Fortunately, all five insurance companies that offered plans this year will still be available in 2027. The fact that options haven't decreased is good news.

Now, let's go through the steps of how to proceed. First, pull out last year's tax return or recent pay stub to estimate your expected household income for 2027.

Next, go to Maryland Health Connection and fill out the application. By entering your age and income accurately, the federal and state subsidies will be calculated and reflected in your premium.

Then, you can choose a plan, but don't just look at the monthly premium; also consider the deductible and out-of-pocket costs. Thanks to the subsidies, a higher-tier plan may come out cheaper than you expect.

If you have regular medications or a specific doctor, make sure to check if they are in the plan's network. Discussing what coverage you need with a doctor or pharmacist is the most reliable way to determine your needs.

Dates are also important. The 2027 insurance open enrollment period is from November 1, 2026, to January 15, 2027.

If you enroll by December 31, coverage starts on January 1. If you enroll in January, the start of coverage will be delayed, so it's recommended to finish this before the busy end of the year.

If you already have insurance this year, don't just rely on automatic renewal. If your income or age has changed, your subsidy may also change, so it's a good idea to update your information and compare plans again.

If you find English documents overwhelming, you can use the free counseling services from Maryland Health Connection. They offer phone consultations and have navigators available to assist you in various locations.

Personally, I think this program is quite well-designed. When young and healthy individuals enroll in insurance, it stabilizes overall premiums, benefiting everyone in the end.

If you know freelancers, part-timers, or friends starting their first job without insurance, please share this article with them. There's no money more wasted than the support they miss out on simply because they didn't know about it.

In summary, if you are a Maryland resident aged 18-37, you can receive both federal and state subsidies. Be sure to calculate and enroll directly this November.