What Happened to ACA Subsidies in 2026?
Enhanced Affordable Care Act subsidies expired on December 31, 2025, causing premium costs to increase significantly for millions of Americans. From 2021 through 2025, the American Rescue Plan Act and Inflation Reduction Act provided enhanced premium tax credits that made marketplace coverage much more affordable.
- 400% FPL income cap reinstated — No subsidies for income above 400% FPL (~$63,840 for a single person)
- Higher required contributions — 2.1%–9.96% of income (vs. 0%–8.5% in 2021–2025)
- No more $0 premiums — Even households at 100–150% FPL now contribute 2.1%–4.19% of income
- Average premium increase — Estimated 114% increase for many enrollees
2026 ACA Subsidy Contribution Structure
| Income range (FPL %) | Required contribution | Change from 2021–2025 |
|---|---|---|
| Below 138% FPL | May qualify for Medicaid | — |
| 100–133% FPL | 2.1% – 3.14% of income | ↑ Was 0% |
| 133–150% FPL | 3.14% – 4.19% of income | ↑ Was 0%–2% |
| 150–200% FPL | 4.19% – 6.60% of income | ↑ Was 2%–6% |
| 200–250% FPL | 6.60% – 8.31% of income | ↑ Was 6%–8.5% |
| 250–300% FPL | 8.31% – 9.96% of income | ↑ Was 8.5% |
| 300–400% FPL | 9.96% of income | ↑ Was 8.5% |
| Above 400% FPL | ❌ Not eligible | Cap reinstated |
State-Level Subsidies Available in Some States
Several states have created their own subsidy programs to offset the federal expiration:
- Full replacement: New Mexico
- Partial replacement: California, Colorado, Connecticut, Maryland, Massachusetts, Washington
Contact your state's health insurance marketplace for details on state-specific subsidies.
Understanding ACA Marketplace Subsidies
ACA premium tax credits (subsidies) reduce your monthly health insurance premium costs. The subsidy amount is calculated based on the cost of the second-lowest-cost silver plan (benchmark plan) in your area minus your required contribution. The actual subsidy you receive depends on your specific location — this calculator provides an estimate based on your required contribution percentage.