About the 2022–2025 Enhanced ACA Subsidies
From 2021 through 2025, the American Rescue Plan Act (ARPA) and Inflation Reduction Act (IRA) provided significantly enhanced premium tax credits for ACA marketplace coverage. These enhanced subsidies:
- Eliminated the 400% FPL income cap — allowing higher earners to qualify
- Capped premium contributions at 8.5% of income for all income levels
- Made coverage free ($0 premiums) for households at 100–150% FPL
- Dramatically reduced costs at all income levels
These enhancements expired on December 31, 2025. The 400% FPL cap has been reinstated and required contributions have increased to the pre-2021 levels.
Enhanced vs. Current 2026 subsidy comparison
| Income range | 2022–2025 (expired) | 2026 (current) |
|---|---|---|
| 100–138% FPL | 0% | 2.1%–3.14% |
| 138–150% FPL | 0% | 3.14%–4.19% |
| 150–200% FPL | 0%–2.0% | 4.19%–6.60% |
| 200–250% FPL | 2.0%–4.0% | 6.60%–8.31% |
| 250–300% FPL | 4.0%–6.0% | 8.31%–9.96% |
| 300–400% FPL | 6.0%–8.5% | 9.96% |
| Above 400% FPL | 8.5% (no cap) | ❌ Not eligible |