By The Guru Gazette Editorial Team · Reviewed by our Benefits Desk · Last Reviewed: June 2026 · Editorial Policy · Fact-Checking Policy
Buying health insurance through the ACA Marketplace changed sharply in 2026. The temporary enhanced premium subsidies that made coverage cheaper from 2021 through 2025 expired at the end of 2025, so many enrollees saw their share of premiums jump. KFF estimated that, on average, subsidized enrollees would pay about 114% more to keep the same plan. This guide explains what changed, who can still get help, and how to get covered for 2026.
Quick summary — ACA in 2026
- Enhanced subsidies expired end of 2025; the 400% FPL cliff returned.
- Premium tax credits still help from about 100% to 400% of the poverty level.
- Above the cliff (about $62,600 single / $128,600 family of 4) help drops to $0.
- Open enrollment runs Nov 1 – Jan 15.
- ACA 2026 uses the 2025 poverty guidelines (see note below).
What changed for 2026
The American Rescue Plan (2021) and Inflation Reduction Act temporarily boosted ACA premium tax credits: they removed the income cap on subsidies and held premiums to 8.5% of income for everyone. Those enhancements were always temporary and expired after the 2025 plan year. For 2026, the rules revert to the original ACA: subsidies phase out and stop entirely at 400% of the Federal Poverty Level, and the percentage of income you are expected to pay rises on a sliding scale. The practical result is higher out-of-pocket premiums for most subsidized enrollees, with the steepest increases just under the cliff.
The 400% subsidy cliff
The biggest change is the return of the subsidy cliff: earn $1 over 400% FPL and your premium tax credit drops to $0. Approximate 2026 cliff thresholds (using the 2025 poverty guidelines):
| Household size | 400% FPL (the cliff) |
|---|---|
| 1 | $62,600 |
| 2 | $84,600 |
| 3 | $106,600 |
| 4 | $128,600 |
See our ACA subsidy cliff guide for the full breakdown and strategies to stay under the line.
How subsidies still work below the cliff
If your income is between roughly 100% and 400% of the FPL, you can still get a premium tax credit that lowers your monthly premium. The credit is tied to the benchmark plan (the second-lowest-cost silver plan in your area): it caps what you pay for that plan at a set percentage of your income, and the government covers the rest. You can apply the credit to any metal-level plan, so a cheaper bronze plan can cost very little after the subsidy. See how the premium tax credit is calculated for the details.
Worked subsidy examples
Example 1 — mid-range income. A 45-year-old earning about 250% of the FPL still qualifies for a premium tax credit in 2026. They pay a capped percentage of their income toward the benchmark silver plan, and the credit covers the difference — though their share is higher than it was under the expired 8.5% cap.
Example 2 — just over the cliff. A 60-year-old single enrollee earning $64,000 is about $1,400 over the ~$62,600 cliff. In 2026 they receive no premium tax credit and pay the full premium — which for an older enrollee can be several hundred dollars a month more. Contributing to a traditional IRA or HSA to drop MAGI under the line can restore the subsidy.
How to get covered for 2026
Most people enroll during Open Enrollment, which runs November 1 through January 15 in states using HealthCare.gov (some state exchanges differ). Steps:
- Create or update your account at HealthCare.gov or your state Marketplace.
- Enter your 2026 income estimate and household size to see your subsidy.
- Compare metal tiers (bronze, silver, gold) and total costs, not just premiums.
- If your income is below ~138% FPL, check Medicaid instead.
- Outside open enrollment, a Special Enrollment Period (job loss, marriage, birth, move) may let you enroll.
Cost-sharing reductions
Beyond premium help, enrollees with income up to about 250% of the FPL who choose a silver plan can get cost-sharing reductions — lower deductibles, copays, and out-of-pocket maximums. These are only available on silver plans, so a lower-income enrollee is often better off in silver than bronze despite the higher sticker premium.
Key takeaways
- Enhanced subsidies expired end of 2025; premiums rose sharply.
- Help remains from ~100%–400% FPL; the cliff returned at 400%.
- 2026 cliff: about $62,600 single / $128,600 family of 4 (2025 FPL).
- Open enrollment: Nov 1 – Jan 15; silver plans add cost-sharing help.
Common mistakes to avoid
- Assuming the 8.5% cap still applies — it expired after 2025.
- Underestimating income and owing back the entire advance credit.
- Dropping coverage entirely instead of comparing options first.
- Choosing bronze over silver when you qualify for cost-sharing reductions.
- Missing the Jan 15 deadline and losing the chance to enroll.
Related resources
- ACA Subsidy Cliff 2026 — the 400% FPL cutoff explained.
- Premium Tax Credit 2026 — how the subsidy is calculated.
- ACA Open Enrollment 2026 — dates and how to enroll.
- 2026 Federal Poverty Level chart
- Medicaid 2026 — for income below ~138% FPL.
- EITC 2026
- Child Tax Credit 2026
- SNAP 2026
Frequently asked questions
Why did ACA premiums go up in 2026?
The enhanced premium tax credits that lowered Marketplace costs from 2021 through 2025 expired at the end of 2025. KFF estimated subsidized enrollees would pay about 114% more on average to keep the same plan, and the 400% FPL subsidy cliff returned.
Who still qualifies for ACA subsidies in 2026?
People with household income roughly between 100% and 400% of the Federal Poverty Level who buy Marketplace coverage and don’t have affordable employer or government coverage can still receive a premium tax credit.
What is the 2026 subsidy cliff?
For 2026 the premium tax credit ends above 400% of the poverty level – about $62,600 for one person, $84,600 for two, $106,600 for three, and $128,600 for a family of four, using the 2025 poverty guidelines.
Why does the ACA use the 2025 poverty guidelines?
ACA Marketplace subsidies for 2026 coverage are calculated using the prior-year (2025) Federal Poverty Guidelines. This differs from the 2026 guidelines that most other programs use during 2026, but both are correct for their purpose.
When is ACA open enrollment for 2026?
Open enrollment generally runs from November 1 through January 15 on HealthCare.gov; some state-run Marketplaces have different dates. Outside that window you need a Special Enrollment Period to sign up.
What are cost-sharing reductions?
Cost-sharing reductions lower your deductible, copays, and out-of-pocket maximum. They are available to enrollees with income up to about 250% of the FPL who choose a silver plan.
Do I have to repay my subsidy if my income changes?
Possibly. You reconcile advance premium tax credits on IRS Form 8962. If your actual income ends up over 400% FPL, you may have to repay the entire advance credit, since there is no repayment cap above the cliff in 2026.
What if I can’t afford a Marketplace plan in 2026?
Compare all metal tiers and check whether you qualify for Medicaid (income below about 138% FPL) or a Special Enrollment Period. Some states offer supplemental subsidies. Dropping coverage entirely leaves you exposed to full medical costs.
The Guru Gazette is an independent publisher and is not affiliated with HealthCare.gov, CMS, or the IRS. Subsidy rules can change if Congress acts — confirm the current year on HealthCare.gov. This content is for educational purposes only and does not constitute financial, tax, legal, medical, or benefits advice. Last reviewed: June 2026.
Sources
- KFF — What we know about 2026 ACA Marketplace premiums: https://www.kff.org/affordable-care-act/
- HealthCare.gov — Saving on premiums & lower costs: https://www.healthcare.gov/lower-costs/
- IRS — The Premium Tax Credit: https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics
- HHS/ASPE — 2025 Poverty Guidelines: https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines