If you’ve been leaning on enhanced premium tax credits (PTCs) to lower your health insurance costs, you’re not alone—and you’re probably feeling the squeeze right now.
The expanded subsidies have helped millions of Americans afford health coverage since the pandemic began. However, they have now ended, and many families are facing steep increases in their monthly premiums, with many more set to lose coverage.
What Changed?
The American Rescue Plan Act of 2021 boosted premium tax credits, making health insurance through the Marketplace more accessible to millions of people.
These enhanced credits capped premiums at 8.5% of household income and increased subsidies across the board. The Inflation Reduction Act extended these benefits through the end of 2025. But as of January 2026, those expanded benefits have now expired, and subsidies have reverted to pre-2021 levels.
Those earning below 400% of the federal poverty level (FPL) still qualify for subsidies. But for many people, this still means hundreds of dollars more in monthly premiums.
How This Affects You
If you’re looking around for coverage on the Health Insurance Marketplace, you’ll likely see higher premiums than you paid last year. According to the IRS, eligibility now depends on stricter income thresholds, and the caps on what you’ll pay have gone up.
Many middle-income families who previously qualified for assistance have now found themselves priced out of subsidies altogether.
Lower-income households (100% – 150% FPL) who have enjoyed $0 premium “benchmark” plans in the past may now face new monthly costs and increased out-of-pocket expenses.
What’s Next?
Start by checking your current plan for changes and exploring other plans that fit your budget. You can visit Healthcare.gov to shop directly or your local State Health Insurance Assistance Program (SHIP) find local assistance. You can also check out SaverPerks partner, HealthSherpa. They make it easy for you to compare plans side by side and check your eligibility for any remaining credits.
You generally cannot enroll in a new health plan on HealthCare.gov outside the annual Open Enrollment Period, which typically runs from November 1 through January 15 each year. However, you can browse plans and estimate prices so you know what to expect.
You can enroll in or change a Marketplace plan outside open enrollment if you qualify for a Special Enrollment Period due to certain life events—such as losing other health coverage, moving, getting married, having a baby, or other qualifying changes
Other options—like short-term insurance, employer coverage, or some state programs—might be available to you if Marketplace plans are out of reach.
If you are facing the loss of Medicare coverage, check out this article.
The change is tough, but you have options. Take the time to find a plan that works for your budget and your family’s needs.
