The Enhanced ACA Subsidies Ended: What It Means for 2027
From 2021 through 2025, Marketplace premiums were capped at 8.5% of income with no income limit, and the lowest incomes paid $0 for a benchmark plan. Those rules expired. Here is what replaced them, what it costs, and how to keep your premium down.
What changed
| Income (% of poverty line) | 2021 through 2025 (enhanced) | 2026 | 2027 |
|---|
Share of household income you’re expected to pay for the benchmark (second-lowest-cost silver) plan; the tax credit covers the rest. Within each band the share rises evenly. Enhanced figures are the American Rescue Plan Act schedule (26 U.S.C. 36B(b)(3)(A)(iii)), extended through 2025 by the Inflation Reduction Act; 2026 and 2027 from IRS Rev. Proc. 2025-25 and Rev. Proc. 2026-26.
Who pays more
- Households above 400% of the poverty line lose the credit entirely. For older enrollees, whose full-price premiums are highest, that can mean thousands of dollars a year. A dollar of income over the line can cost the whole credit, so contributions to a 401(k), traditional IRA or HSA that lower your income can be worth a lot.
- Lower incomes now pay something for the benchmark plan (2.15% of income at the bottom in 2027) instead of $0, so many $0-premium plans now have a premium.
- Everyone with a credit pays a larger share of income than under the enhanced rules.
According to KFF’s analysis of CMS data, the average monthly premium enrollees paid after the credit rose from $113 in 2025 to $178 in 2026, and CMS counted 23.1 million sign-ups for 2026.
Paying credit back
If you take the credit in advance and your income ends up higher than you estimated, you repay the difference when you file. For tax years after 2025 there’s no cap on that repayment: if your income lands above 400% of the poverty line, you repay every dollar of advance credit. Update your Marketplace application when your income changes, and estimate conservatively.
Is an extension coming?
As of October 22, 2026, no extension has become law. The House passed a three-year extension (H.R. 1834) on January 8, 2026; the Senate hasn’t voted on it, and an earlier Senate extension failed in December 2025. Prices for 2027 on HealthCare.gov reflect current law. If Congress acts, we’ll update this page and our subsidy calculator.
How to keep your premium down
- Shop again. Your benchmark plan changes every year, and so does your credit. Don’t let auto-renewal pick for you.
- Look at bronze. The credit is a fixed dollar amount, so a cheaper plan can cost little or nothing after it. Compare worst-case years, not just premiums, with the metal tier calculator.
- Under 250% of the poverty line, look at silver first for its lower deductibles.
- Near 400%? Lowering your modified adjusted gross income by a pre-tax retirement or HSA contribution can bring the credit back.
Questions
Did the enhanced premium tax credits expire?
Yes. They covered tax years 2021 through 2025. For 2026 and 2027, the original rules apply: a credit only between 100% and 400% of the poverty line, with higher required contributions.
What is the 400% cliff in dollars?
For 2027 coverage, the cutoff is four times the poverty guideline: four times $15,960 for one person in the 48 states and DC, plus four times $5,680 for each additional person. Our subsidy calculator shows the exact figure for your household size.
Is there still a repayment cap?
No. For tax years after 2025, you repay all excess advance credit, whatever your income.
Sources
Checked October 22, 2026.
- IRS, “Questions and answers on the premium tax credit” (expanded eligibility for 2021 through 2025; no repayment cap after 2025) — irs.gov.
- IRS Rev. Proc. 2026-26 — irs.gov PDF; Rev. Proc. 2025-25 — irs.gov PDF.
- H.R. 1834, 119th Congress, actions — congress.gov.
- CMS, 2026 Marketplace Open Enrollment results — cms.gov; KFF, 2026 Marketplace premiums after the credit — kff.org.
Educational information, not tax advice. We are not an insurance agent or broker and are not connected with HealthCare.gov. · Advertiser disclosure