ACA Premium Tax Credits Expired in 2026: What It Means for Your Health Insurance Costs
What Happened With the Enhanced Premium Tax Credits?
Back in 2021, the American Rescue Plan Act expanded the premium tax credits available to people buying health insurance through the ACA marketplace (Healthcare.gov). Those enhanced subsidies did two things: they made existing credits larger, and they opened eligibility to people who previously earned too much to qualify.
The result was dramatic. Marketplace enrollment more than doubled — from around 11.4 million in 2020 to over 24 million by 2025. Millions of people were getting plans for $0 or close to it.
Those enhanced credits expired at the end of 2025. Congress debated extending them throughout the year but ultimately didn't pass legislation in time.
How Much More Are People Paying in 2026?
The short answer: a lot more.
According to analysis from KFF, the average marketplace enrollee's out-of-pocket premium contribution increased by approximately 114% — that's roughly an extra $1,016 per year on average.
Here's how it breaks down in practice. If you earned around $28,000 per year, under the enhanced credits you might have paid about $27 per month for a benchmark silver plan. Now you could be looking at around $130 per month for that same plan. If you're a couple earning $85,000 per year (just above 400% FPL), your annual premium costs could have jumped by over $22,000 because you may no longer qualify for any tax credits at all. If you had a $0 premium plan, those earning between 100-150% of the federal poverty level previously qualified for fully subsidized benchmark plans — now there's a required contribution of roughly 2% of income.
The average monthly gross premium for a benchmark silver plan in 2026 is around $625 for an individual. For the lowest-cost bronze plan, it's around $456.
If you earned around $28,000 per year, under the enhanced credits you might have paid about $27 per month for a benchmark silver plan.
Do I Still Get Any Subsidies?
Yes — premium tax credits still exist. They just went back to the original ACA formula, which is less generous. Your eligibility and amount depend on your household income, family size, age, and where you live.
The biggest changes: people earning over 400% of the federal poverty level may no longer qualify for any tax credits at all (the enhanced credits removed this income cap). People under 150% FPL still get substantial help but now have a required premium contribution instead of $0. Everyone in between will see their required contribution as a percentage of income increase.
Some states offer additional state-level subsidies that can help offset the federal reduction. It's worth checking with your state's exchange or a licensed broker to see what's available in your area.
What Are Your Options Right Now?
You have several paths forward. First, shop for a different marketplace plan. If your current plan's premium jumped significantly, don't just accept it. The marketplace has multiple metal tiers (bronze, silver, gold, platinum) and many carriers. A different plan at a lower tier could save you hundreds per month — though you'll likely have higher out-of-pocket costs when you use care.
Second, look at private market and off-marketplace plans. This is where a lot of people are finding better value in 2026. Private PPO plans outside the marketplace can offer lower premiums and better coverage than what you'd pay for a marketplace plan without the enhanced subsidies — especially if you're relatively healthy and don't qualify for significant tax credits.
Third, check if you qualify for a Special Enrollment Period. If your premium increased substantially due to the subsidy changes, you may be able to switch plans outside of open enrollment. Fourth, explore short-term or supplemental coverage if you're healthy and primarily need catastrophic protection. Finally, talk to a licensed broker who can run your specific numbers across marketplace plans, private plans, and supplemental options to find the best fit — at no cost to you.
Will Congress Extend the Enhanced Credits Later in 2026?
It's possible. As of early 2026, there's still active debate in Congress about reinstating or modifying the enhanced premium tax credits. If they do pass an extension, it could potentially be applied retroactively to premiums already paid in 2026. But there's no guarantee of timing or outcome.
The smart move: don't plan your coverage around what Congress might do. Make the best decision with what's available now, and adjust later if the landscape changes.
If they do pass an extension, it could potentially be applied retroactively to premiums already paid in 2026.
The Bottom Line
The expiration of enhanced premium tax credits is the biggest shake-up to individual health insurance costs since the ACA launched. If you're on a marketplace plan, your costs likely went up — potentially by a lot.
But you're not stuck. Between marketplace plan shopping, private market alternatives, and supplemental coverage, there are ways to get solid coverage without breaking the bank. The worst thing you can do is nothing. Review your options, run the numbers, and make sure you're not overpaying for 2026 coverage.
This article is for informational purposes only and does not constitute insurance advice. Coverage options, pricing, and subsidy eligibility vary based on individual circumstances. Contact a licensed broker for personalized guidance.
What Happened With the Enhanced Premium Tax Credits?
Back in 2021, the American Rescue Plan Act expanded the premium tax credits available to people buying health insurance through the ACA marketplace (Healthcare.gov). Those enhanced subsidies did two things: they made existing credits larger, and they opened eligibility to people who previously earned too much to qualify.
The result was dramatic. Marketplace enrollment more than doubled — from around 11.4 million in 2020 to over 24 million by 2025. Millions of people were getting plans for $0 or close to it.
Those enhanced credits expired at the end of 2025. Congress debated extending them throughout the year but ultimately didn't pass legislation in time.
How Much More Are People Paying in 2026?
The short answer: a lot more.
According to analysis from KFF, the average marketplace enrollee's out-of-pocket premium contribution increased by approximately 114% — that's roughly an extra $1,016 per year on average.
Here's how it breaks down in practice. If you earned around $28,000 per year, under the enhanced credits you might have paid about $27 per month for a benchmark silver plan. Now you could be looking at around $130 per month for that same plan. If you're a couple earning $85,000 per year (just above 400% FPL), your annual premium costs could have jumped by over $22,000 because you may no longer qualify for any tax credits at all. If you had a $0 premium plan, those earning between 100-150% of the federal poverty level previously qualified for fully subsidized benchmark plans — now there's a required contribution of roughly 2% of income.
The average monthly gross premium for a benchmark silver plan in 2026 is around $625 for an individual. For the lowest-cost bronze plan, it's around $456.
If you earned around $28,000 per year, under the enhanced credits you might have paid about $27 per month for a benchmark silver plan.
Do I Still Get Any Subsidies?
Yes — premium tax credits still exist. They just went back to the original ACA formula, which is less generous. Your eligibility and amount depend on your household income, family size, age, and where you live.
The biggest changes: people earning over 400% of the federal poverty level may no longer qualify for any tax credits at all (the enhanced credits removed this income cap). People under 150% FPL still get substantial help but now have a required premium contribution instead of $0. Everyone in between will see their required contribution as a percentage of income increase.
Some states offer additional state-level subsidies that can help offset the federal reduction. It's worth checking with your state's exchange or a licensed broker to see what's available in your area.
What Are Your Options Right Now?
You have several paths forward. First, shop for a different marketplace plan. If your current plan's premium jumped significantly, don't just accept it. The marketplace has multiple metal tiers (bronze, silver, gold, platinum) and many carriers. A different plan at a lower tier could save you hundreds per month — though you'll likely have higher out-of-pocket costs when you use care.
Second, look at private market and off-marketplace plans. This is where a lot of people are finding better value in 2026. Private PPO plans outside the marketplace can offer lower premiums and better coverage than what you'd pay for a marketplace plan without the enhanced subsidies — especially if you're relatively healthy and don't qualify for significant tax credits.
Third, check if you qualify for a Special Enrollment Period. If your premium increased substantially due to the subsidy changes, you may be able to switch plans outside of open enrollment. Fourth, explore short-term or supplemental coverage if you're healthy and primarily need catastrophic protection. Finally, talk to a licensed broker who can run your specific numbers across marketplace plans, private plans, and supplemental options to find the best fit — at no cost to you.
Will Congress Extend the Enhanced Credits Later in 2026?
It's possible. As of early 2026, there's still active debate in Congress about reinstating or modifying the enhanced premium tax credits. If they do pass an extension, it could potentially be applied retroactively to premiums already paid in 2026. But there's no guarantee of timing or outcome.
The smart move: don't plan your coverage around what Congress might do. Make the best decision with what's available now, and adjust later if the landscape changes.
If they do pass an extension, it could potentially be applied retroactively to premiums already paid in 2026.
The Bottom Line
The expiration of enhanced premium tax credits is the biggest shake-up to individual health insurance costs since the ACA launched. If you're on a marketplace plan, your costs likely went up — potentially by a lot.
But you're not stuck. Between marketplace plan shopping, private market alternatives, and supplemental coverage, there are ways to get solid coverage without breaking the bank. The worst thing you can do is nothing. Review your options, run the numbers, and make sure you're not overpaying for 2026 coverage.
This article is for informational purposes only and does not constitute insurance advice. Coverage options, pricing, and subsidy eligibility vary based on individual circumstances. Contact a licensed broker for personalized guidance.
Have questions about your coverage options?
Carter can help you find the right plan — at no cost to you.
This article is for informational purposes only and does not constitute insurance advice. Coverage options vary by state and individual circumstances. Consult a licensed broker for personalized guidance.
