By 
If your ACA Marketplace premium jumped in 2026, the expiration of the enhanced premium tax credits is probably a major reason, but it is not the only one.
The extra federal subsidies available from 2021 through 2025 expired on December 31, 2025. At the same time, insurers raised the underlying price of many Marketplace plans.
The result was a sharp increase in what consumers actually pay. KFF’s analysis of 2026 enrollment data found that average monthly premium payments rose from $113 in 2025 to $178 in 2026, a 58% increase.
The change is especially painful for households above 400% of the federal poverty level, because the federal subsidy cliff returned in 2026. Above that limit, you generally receive no federal premium tax credit.
Key takeaways
- Enhanced ACA premium tax credits expired after 2025. The more generous subsidy rules that applied from 2021 through 2025 no longer apply for 2026.
- Average Marketplace premium payments increased from $113 to $178 per month, or about 58%, according to KFF’s analysis of CMS data.
- The 400% FPL subsidy cliff is back. Above the federal income limit, you generally cannot receive the federal premium tax credit.
- For a one-person household in the 48 contiguous states and DC, the 400% FPL threshold used for 2026 coverage is approximately $62,600.
- Households below 400% FPL may still receive a premium tax credit, but the 2026 subsidy formula is less generous than the enhanced rules used through 2025.
- A major 2026 tax change removed the repayment caps on excess advance premium tax credits. If you receive too much subsidy during 2026, you may have to repay the full excess when you file.
- If your income changes during the year, update your Marketplace application rather than waiting until tax season.
Why did ACA premiums increase so much in 2026?
There are two different things happening, and separating them makes the increase easier to understand.
1. The enhanced premium tax credits expired
The original Affordable Care Act created premium tax credits for eligible households buying coverage through an ACA Marketplace.
Under the original rules, federal PTC eligibility generally stops when household income exceeds 400% of the federal poverty level.
Congress temporarily made the program more generous through the American Rescue Plan Act beginning in 2021. The Inflation Reduction Act later extended those enhancements through the end of 2025.
The temporary rules did two important things:
- Increased subsidies for many households already eligible for help
- Removed the 400% FPL income ceiling, allowing some higher-income households to receive federal assistance
Those enhancements expired on December 31, 2025.
The ACA itself did not expire. The original premium tax credit remains.
What disappeared was the extra assistance layered on top of it.
2. The underlying price of Marketplace insurance also increased
The subsidy expiration is not the only reason 2026 feels expensive.
Insurers also increased the amount they charge for ACA coverage. KFF estimated before the 2026 plan year that Marketplace insurers were raising premiums by about 26% on average, although increases varied significantly by state and plan.
That means some consumers were hit from both directions:
Higher plan price + smaller subsidy = much higher amount due each month
Households above the new subsidy cliff can feel the biggest difference because they may lose their federal tax credit entirely while also facing a higher full-price premium.
How much did Marketplace premiums actually increase?
This is where a lot of 2026 ACA articles mix up two different numbers.
KFF initially estimated that premium payments for subsidized enrollees could rise 114% on average if the enhanced credits expired and consumers stayed in the same coverage.
That 114% was not a 114% increase in insurers’ gross premiums.
After consumers actually shopped for 2026 coverage, changed plans, or left the Marketplace, KFF found that average premium payments across Marketplace consumers increased:
| Year | Average monthly premium paid |
|---|---|
| 2025 | $113 |
| 2026 | $178 |
| Change | +58% |
Many people reduced the increase by switching to lower-premium plans. Others, particularly people facing very large increases around the subsidy cliff, did not maintain Marketplace coverage.
CMS data also show a major change in subsidy participation. The share of Marketplace plan selections receiving advance premium tax credits fell from 92% in 2025 to 87% in 2026.
So the cleanest number to use for what enrollees actually experienced is the 58% average increase in net premium payments, not the earlier 114% projection.
What is the 400% FPL subsidy cliff?
The subsidy cliff is the point where federal premium tax credit eligibility generally drops to zero.
From 2021 through 2025, the enhanced subsidy rules temporarily removed this cliff.
It returned in 2026.
For the premium tax credit, the IRS uses the poverty guidelines that were most recently published on the first day of the Open Enrollment period for that coverage year.
For 2026 coverage, that means the 2025 federal poverty guidelines apply.
For a one-person household in the 48 contiguous states and Washington, DC:
| Household income | Approximate 2026 federal PTC position |
|---|---|
| Below $15,650 | Special rules apply; Medicaid or other coverage may be available |
| $15,650 to $39,125 | Potential PTC eligibility; cost-sharing reductions may also apply at qualifying incomes |
| $39,125 to $62,600 | Potential PTC eligibility |
| Above $62,600 | Generally no federal PTC |
These numbers are for a one-person household. The thresholds rise as household size increases and are different in Alaska and Hawaii.
Income alone also does not guarantee a premium tax credit. You must meet the other federal eligibility rules, including rules involving employer coverage, government coverage, filing status, and Marketplace enrollment.
Why people under 400% FPL can still be paying more
Staying under the subsidy cliff does not mean your 2026 premium stayed the same.
The enhanced tax credits did more than help households above 400% FPL. They also reduced the required premium contribution for people below that level.
For 2026, the IRS’s applicable percentage table generally requires eligible households to contribute between 2.10% and 9.96% of household income toward the benchmark premium, depending on income relative to the poverty level.
The federal premium tax credit generally covers the difference between that required contribution and the applicable benchmark Silver plan, subject to the tax rules.
So you can still qualify for a subsidy in 2026 and receive less federal help than you received in 2025.
That is why the impact is not limited to people who crossed the 400% line.
Who was hit hardest?
Households just above 400% FPL
This is the clearest group.
Someone slightly below the threshold may still receive a federal premium tax credit.
Someone slightly above it generally receives zero federal PTC.
That creates a sharp financial cliff instead of the gradual phaseout households experienced under the enhanced rules.
KFF found that people between 400% and 500% FPL accounted for a disproportionately large share of the decline in Marketplace sign-ups, even though they were a relatively small part of Marketplace enrollment before the enhanced credits expired.
Older Marketplace enrollees
Unsubsidized ACA premiums can vary significantly by age.
That makes losing the PTC particularly expensive for some older adults who are not yet eligible for Medicare.
The exact impact depends on the enrollee’s age, ZIP code, insurer, plan, and household income, so there is no single national premium that applies to everyone.
Self-employed people and freelancers
Freelancers face an additional problem: their income can change substantially during the year.
A strong quarter, large client payment, business profit increase, or unexpected capital gain could push annual household MAGI higher than originally estimated.
That matters more in 2026 because both the 400% subsidy cliff and the new APTC repayment rules create more downside if your estimate is wrong.
See our health insurance guide for freelancers and gig workers for the broader coverage options.
One major 2026 rule freelancers should not miss
There is another ACA tax change that deserves almost as much attention as the subsidy cliff.
The federal repayment caps for excess advance premium tax credits no longer apply after 2025.
When you enroll through the Marketplace, your monthly subsidy is normally based on the annual household income you estimate on your application.
That subsidy is an advance premium tax credit, or APTC.
When you file your federal return, Form 8962 compares:
the subsidy you received during the year
with
the premium tax credit you were actually entitled to based on final household income
Before 2026, some taxpayers below 400% FPL had limits on how much excess APTC they had to repay.
For tax years after 2025, the IRS says those repayment caps are gone.
If you received $4,000 more in APTC than you ultimately qualify for, you could therefore have the full $4,000 added to your federal tax liability.
That makes updating your Marketplace income during the year much more important.
What income counts for ACA subsidies?
The Marketplace uses household modified adjusted gross income, or MAGI.
For premium tax credit purposes, household income generally includes your MAGI plus the MAGI of certain family members who are required to file a tax return.
ACA MAGI generally starts with adjusted gross income and adds back certain items, including:
- Tax-exempt interest
- Nontaxable Social Security benefits
- Certain excluded foreign earned income
For a self-employed person, business income affects AGI after the applicable tax deductions and adjustments.
This is another reason your Marketplace estimate may not match gross business revenue.
If your income changes, update the Marketplace using your revised estimate of full-year household income, not just what you earned during the most recent month.
What should you do if your 2026 premium is unaffordable?
Do not look only at the monthly premium. Work through the options in this order.
1. Recheck the income on your Marketplace application
If your expected 2026 household income has changed since enrollment, update it.
A lower projected income may increase your premium tax credit if you remain eligible.
A higher projected income can reduce your advance credit now, which may help prevent a large repayment when you file your taxes.
HealthCare.gov specifically recommends reporting income and household changes when they happen.
2. Compare the full annual cost of your plan
A cheaper premium does not automatically mean cheaper health care.
Compare:
- Monthly premium
- Deductible
- Copays
- Coinsurance
- Out-of-pocket maximum
- Prescription coverage
- Provider network
- Expected health care use
Our health plan comparison guide walks through the numbers.
3. Be careful before dropping from Silver to Bronze
Bronze plans generally have lower premiums but higher out-of-pocket costs.
There is another reason to check carefully before switching.
Cost-sharing reductions are only available through eligible Silver Marketplace plans.
If your income qualifies for CSR, moving to Bronze could mean giving up lower deductibles, copays, and other cost sharing.
A Bronze plan may still make sense in some situations, but compare the expected total annual cost, not just the premium displayed on the shopping screen.
4. Check Medicaid or CHIP if household income dropped
Medicaid eligibility varies by state.
In states that expanded Medicaid, many adults can qualify at incomes around 138% of FPL, subject to state eligibility rules.
Children may qualify for Medicaid or CHIP at substantially higher household incomes.
Medicaid and CHIP enrollment is available throughout the year for people who qualify.
If you recently lost job-based insurance, that loss can also create a Special Enrollment Period for Marketplace coverage.
5. Check whether your state offers additional financial help
Federal PTC rules are not the entire story.
Some state-based Marketplaces provide their own premium or cost-sharing assistance in addition to federal subsidies.
That means the federal 400% FPL cliff does not necessarily tell you your final cost in every state.
Use your official state Marketplace or HealthCare.gov rather than estimating your eligibility from a national income table alone.
6. Get free Marketplace help if the numbers still do not make sense
You do not have to figure this out alone or pay someone simply to understand your eligibility.
HealthCare.gov offers access to trained local assisters and navigators through LocalHelp.HealthCare.gov.
They can help you review Marketplace eligibility and enrollment options.
Do you still qualify for an ACA subsidy in 2026?
Possibly, if your household income is generally between 100% and 400% FPL and you meet the other premium tax credit requirements.
The federal subsidy itself did not disappear in 2026.
What disappeared was the enhanced version that had temporarily:
- Increased the credit for many households
- Reduced required premium contributions
- Allowed qualifying households above 400% FPL to receive subsidies
If your income is above 400% FPL, you generally cannot claim the federal premium tax credit for 2026.
There are limited exceptions to the normal lower-income rules, particularly for certain lawfully present individuals, so use your Marketplace eligibility result rather than relying only on a simple income table.
Do you have to file Form 8962 for 2026?
If advance premium tax credits were paid for you or someone in your tax family during 2026, yes.
When you file your 2026 federal income tax return in 2027, you will generally receive information from Form 1095-A and use Form 8962, Premium Tax Credit, to reconcile your subsidy.
The calculation can produce three basic outcomes:
You received the correct amount: no additional PTC adjustment is necessary.
You received too little APTC: the additional credit can increase your refund or reduce your tax due.
You received too much APTC: the excess increases your federal tax liability.
The last outcome is especially important for 2026 because the previous income-based repayment caps no longer apply.
What should you do before 2027 Open Enrollment?
Do not automatically renew the same plan just because you have used it for years.
Before choosing 2027 coverage:
- Update your expected household income.
- Review your new PTC eligibility.
- Compare the premium after subsidy, not just the insurer’s full price.
- Compare deductible and out-of-pocket maximum.
- Check whether your doctors and prescriptions remain covered.
- Check whether your state offers additional financial assistance.
- Compare every available plan again before renewing.
Marketplace rules and insurer pricing can change from year to year, so the cheapest option in 2026 may not remain the best choice for 2027.
See our ACA Marketplace 2027 enrollment guide before the next enrollment period.
Frequently asked questions
Why did my ACA premium go up in 2026?
The enhanced premium tax credits expired after 2025, reducing subsidies for many households and eliminating federal PTC eligibility above 400% FPL. Underlying Marketplace plan prices also increased in 2026, so some households were hit by both higher premiums and less financial assistance.
How much did ACA premiums increase in 2026?
KFF found that average monthly Marketplace premium payments increased from $113 in 2025 to $178 in 2026, a 58% rise. Individual increases vary widely by income, age, location, plan, and subsidy eligibility.
What happened to the 114% ACA premium increase?
The 114% figure was an earlier KFF projection of how much subsidized enrollees’ payments could increase if the enhanced credits expired and people stayed in the same plans. It was not a 114% increase in gross insurance premiums. After consumers changed plans and enrollment shifted, the observed average payment increase was 58%.
What is the ACA subsidy cliff for 2026?
The federal premium tax credit generally ends above 400% of the federal poverty level. For a one-person household in the 48 contiguous states and DC, the 2026 coverage threshold is approximately $62,600.
Can I still get an ACA subsidy in 2026?
Yes. The original ACA premium tax credit still exists for qualifying households generally between 100% and 400% FPL. Eligibility also depends on other factors, including access to qualifying employer or government coverage.
What happens if my income ends up higher than I estimated?
Your final premium tax credit is calculated using your actual annual household income. If you received more APTC than you qualify for, you reconcile the difference on Form 8962. Beginning with tax year 2026, the previous repayment caps no longer apply, so you may have to repay the full excess.
Should I switch to a Bronze plan to lower my premium?
Maybe, but compare total cost first. Bronze plans typically trade a lower premium for higher out-of-pocket costs. If you qualify for cost-sharing reductions, remember that those extra savings are generally available only with an eligible Silver plan.
What is Form 8962?
Form 8962 is the IRS form used to calculate your final premium tax credit and reconcile it with advance premium tax credits paid to your insurer during the year. If APTC was paid for you or a member of your tax family, you generally must file it with your federal return.
Bottom line
If your ACA Marketplace bill jumped in 2026, the expiration of the enhanced premium tax credits is a major reason, but higher underlying insurance prices also contributed.
The most important changes are straightforward:
- The enhanced subsidies ended after 2025.
- The 400% FPL federal subsidy cliff returned.
- Average Marketplace premium payments rose from $113 to $178 per month.
- People below 400% FPL can still qualify for federal premium tax credits, but the subsidy formula is less generous than it was under the temporary enhancements.
- Excess APTC repayment caps are gone for 2026, making accurate income estimates more important.
If your income changes during the year, update your Marketplace application instead of waiting until tax season.
And when you shop for your next plan, compare the full annual cost rather than automatically choosing the lowest premium. For people eligible for cost-sharing reductions, a Silver plan can sometimes offer much better overall value than a cheaper-looking Bronze plan.
For more help, see our health insurance guide for freelancers, health plan comparison guide, and ACA Marketplace 2027 enrollment guide.
This article is for general educational and informational purposes only and is not individualized tax, financial, or insurance advice. ACA subsidy rules, household income calculations, plan prices, and state assistance vary by situation and can change. Verify your eligibility through HealthCare.gov or your official state Marketplace, and consider using a qualified tax professional or licensed Marketplace navigator for help with your specific circumstances.
