The ACA's enhanced premium tax credits expired on December 31, 2025. If you enrolled in Marketplace coverage through HealthCare.gov last year, your 2026 premiums are almost certainly higher, in some cases more than double what you paid in 2025. This guide explains exactly what changed, who it affects, and what your options are right now.
What Were the Enhanced Subsidies?
From 2021 through 2025, two federal laws significantly boosted ACA premium tax credits for people buying health insurance through the Marketplace:
- The American Rescue Plan Act (ARPA) of 2021 first expanded the credits
- The Inflation Reduction Act (IRA) of 2022 extended them through December 31, 2025
These enhanced credits did two important things. First, they lowered the percentage of income people had to pay toward their benchmark plan premium, meaning subsidies were larger. Second, they removed the hard income cutoff at 400% of the federal poverty level (FPL), allowing households above that threshold to still receive some credit if their premiums were high relative to their income.
Both of those changes expired on January 1, 2026.
What Changed on January 1, 2026
The expiration means the ACA subsidy rules reverted to their pre-ARPA baseline. Here is what that looks like in practice.
The subsidy cliff is back. Under the enhanced rules, households earning above 400% FPL could still receive subsidies if their premiums were expensive. That provision is gone. In 2026, the income cutoff is a hard cap: if your household income exceeds 400% of the 2025 federal poverty level by even one dollar, you receive zero premium tax credit. According to KFF, this affects millions of current enrollees.
Premium contribution percentages jumped. For those who remain under 400% FPL and still qualify for subsidies, the required contribution toward the benchmark plan premium is now higher. Where you once paid 2% of income at 200% FPL, you now owe 6.6% of income.
Average subsidized premiums more than doubled. The Congressional Research Service estimated that subsidized enrollees are paying an average of $1,904 per year in 2026, up from an average of $888 in 2025, a 114% increase.
2026 ACA Income Limits by Household Size
To qualify for any premium tax credit in 2026, your household income must fall between 100% and 400% of the federal poverty level. Eligibility is based on 2025 poverty guidelines, per HealthCare.gov.
2026 ACA Subsidy Income Limits: Continental United States
| Household Size | 100% FPL (Minimum) | 400% FPL (Maximum) |
|---|
| 1 | $15,650 | $62,600 |
| 2 | $21,150 | $84,600 |
| 3 | $26,650 | $106,600 |
| 4 | $32,150 | $128,600 |
| 5 | $37,650 | $150,600 |
| 6 | $43,150 | $172,600 |
| 7 | $48,650 | $194,600 |
| 8 | $54,150 | $216,600 |
| Each additional person | +$5,500 | +$22,000 |
Alaska and Hawaii use higher FPL thresholds. If you live in either state, the income limits above do not apply. Your state-specific limits are higher.
If you are below 100% FPL in a state that has not expanded Medicaid, you may fall into the "coverage gap" and not qualify for either Medicaid or ACA subsidies. Check your eligibility at CoveredUSA to understand your specific situation.
2026 Premium Contribution Rates (What You Owe)
Your subsidy amount is calculated as the difference between the benchmark plan's full premium and your required contribution. The required contribution is a set percentage of your household income, based on where you fall on the FPL scale.
2026 Required Premium Contributions by Income Level
| Income (% FPL) | Required Contribution (% of Income) |
|---|
| Under 133% | 2.10% |
| 133% to 150% | 3.14% |
| 150% to 200% | 4.19% |
| 200% to 250% | 6.60% |
| 250% to 300% | 8.44% |
| 300% to 400% | 9.96% |
| Above 400% | No subsidy |
To see what this means in dollars: a person earning $40,000 per year (roughly 250% FPL for a single adult) now owes up to 8.44% of income, about $3,376/year, toward their benchmark premium before any subsidy applies. Under the enhanced rules in 2025, that same person owed significantly less.
Source: healthreformbeyondthebasics.org, Coverage Year 2026 Reference Guide.
How to Apply for ACA Coverage in 2026
If you have not enrolled yet, or if you need to update your plan, here is how to navigate coverage in 2026.
Enrollment windows:
- Open Enrollment for 2027 coverage runs November 1 through January 15, 2027
- Special Enrollment Periods (SEPs) are available year-round if you have a qualifying life event
- If you recently lost Medicaid coverage, you have a 90-day SEP window
Step-by-step application:
- Gather your documents (see checklist below)
- Go to HealthCare.gov or your state's exchange
- Create or log in to your account
- Enter your household size, income estimate, and zip code
- Review the plans and subsidy amounts available to you
- Select a plan and confirm enrollment
- Pay your first premium to activate coverage
Documents needed:
- Social Security numbers for all household members
- Proof of income (pay stubs, most recent tax return, employer letter)
- Immigration documents if applicable
- Any current health insurance information
- Employer coverage details if you have access to job-based insurance
Common reasons applications get denied or subsidies are reduced:
- Income reported differs significantly from what appears on your most recent tax return
- You have access to affordable employer-sponsored coverage (the affordability test uses 9.96% of household income in 2026)
- You are eligible for Medicare or Medicaid but did not enroll
- Citizenship or immigration status documentation is incomplete
- You missed the enrollment window without a qualifying SEP event
Who Is Still Eligible for Meaningful Subsidies in 2026
Despite the expiration, subsidies remain available and can still be substantial for lower-income households.
Households under 150% FPL still owe only about 2-4% of income toward the benchmark plan. This is relatively affordable coverage, and some zero-premium options may still exist depending on your state and the plans available in your area.
Households at 150-250% FPL face higher contributions than in 2025, but subsidies remain meaningful. Run the numbers: a $25,000 annual income with a required contribution of 4.19% means you owe $1,047/year max toward your benchmark plan.
Medicaid expansion states: If your state expanded Medicaid, and your income is at or below 138% FPL, you likely qualify for Medicaid instead of Marketplace coverage. Medicaid has no premiums for most enrollees. Check our ACA income limits guide for a full breakdown.
States with Basic Health Programs: Oregon, Minnesota, Washington state, and Washington D.C. have Basic Health Programs that provide coverage for people with income between 138% and 200% FPL at lower cost than Marketplace plans.
What to Do If You're Above the 400% FPL Cliff
If your income puts you above 400% FPL in 2026, you receive no premium tax credit. Your options include:
Stay enrolled without a subsidy. You pay the full premium, but Marketplace plans are guaranteed-issue (no denial for pre-existing conditions) and cover all essential health benefits.
Shop off-exchange. Plans sold outside the Marketplace are also guaranteed-issue. Some insurers offer plans that may be priced differently, though they follow the same ACA rules.
HSA-eligible high-deductible plans. If you choose a high-deductible health plan (HDHP), you can contribute to a Health Savings Account (HSA) and reduce your taxable income. For 2026, HSA contribution limits are $4,400 for individuals and $8,750 for families.
Manage income strategically. If you are self-employed or have variable income, consult a tax professional about whether structuring income differently could bring you under the 400% FPL threshold.
Check your eligibility now at CoveredUSA. It takes 2 minutes.
Frequently Asked Questions
Did the ACA subsidies end completely?
No. The enhanced subsidies expired, but the ACA's original premium tax credit program remains in place. Households earning between 100% and 400% FPL in 2026 still qualify for premium tax credits, just smaller than they were in 2025.
What is the 400% FPL income limit for a family of four in 2026?
For a family of four in the continental United States, the 400% FPL cutoff for 2026 is approximately $128,600 per year. Families above this threshold receive no premium tax credit.
Will Congress restore the enhanced subsidies?
As of mid-2026, Congress has not passed legislation to restore the enhanced premium tax credits. The "One Big Beautiful Bill" legislation moving through Congress in 2025 did not extend the enhanced subsidies. Legislative status can change. Check healthcare.gov for official updates.
Can I switch plans mid-year if I'm unhappy with my costs?
Generally, no. Once you enroll in a Marketplace plan, you are locked in until the next Open Enrollment period unless you have a qualifying Special Enrollment Period event (job loss, marriage, moving, having a baby, etc.).
What if I already enrolled and then my income changes?
If your income changes significantly during the year, update your application on HealthCare.gov. If you under-estimated your income and received more subsidy than you were entitled to, you will owe the difference when you file your taxes. If you over-estimated, you will receive the difference as a tax credit.
I'm on Medicaid right now: does this affect me?
The ACA subsidy expiration specifically affects Marketplace (exchange) plans, not Medicaid. If you are enrolled in Medicaid, your coverage is governed by different rules. However, if your income rises above your state's Medicaid limit, you would then turn to the Marketplace for coverage, and the standard subsidy rules described in this article would apply.
How do I find out if I still qualify for a subsidy in 2026?
Use the free eligibility screener at CoveredUSA. Answer a few questions about your household size, income, and state, and you will see which programs you qualify for and an estimate of what you would pay.
