What changed
Under the original Affordable Care Act formula, which applies again, premium tax credits are generally available to households with incomes between 100% and 400% of the federal poverty level. Above 400%, there is no subsidy at all: the so-called “subsidy cliff”. Households below that line also generally pay a larger share of their income than they did under the enhanced credits.
Who is most affected
- Middle-income households just above 400% of the poverty level, especially older enrollees in high-cost areas.
- Lower-income enrollees who previously paid very low or zero premiums.
- Self-employed people and early retirees who buy their own coverage.
What you can do
- Estimate your income carefully: being just under a threshold can matter a lot.
- Contributions to a traditional IRA or HSA can reduce the income figure used for subsidies.
- Compare metal levels: a bronze plan paired with an HSA may suit healthy enrollees. See HSA changes.
- Check if you qualify for Medicaid or CHIP in your state.
- Use free local help (navigators) listed on HealthCare.gov.
General information, not medical, legal or insurance advice. This post reflects the position on the date shown. Check the official sources below for the latest rules.
Last updated: 15 October 2026
