ACA marketplace health plan enrollees could face ‘subsidy cliff’ in 2026 — here’s how to avoid it
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ACA marketplace health plan enrollees could face ‘subsidy cliff’ in 2026 — here’s how to avoid it
The enhanced benefit is set to expire at the end of the year. If it does, some enrollees could face a “subsidy cliff” once income exceeds certain thresholds. “Costs could go up by hundreds of dollars a month,” says financial planner Cathy Curtis.
This could affect millions of Americans, including students, self-employed or contract workers and younger retirees, who buy marketplace insurance and claim the so-called premium tax credit, which makes coverage cheaper.
The enhanced benefit is set to expire at the end of the year. If it does, some enrollees could face a “subsidy cliff,” which eliminates the premium tax credit entirely, once income exceeds certain thresholds, financial experts say.
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If you pass the threshold by even $1 and lose the credit, “costs could go up by hundreds of dollars a month,” said certified financial planner Cathy Curtis, CEO of Curtis Financial Planning in Oakland, California.
But precise income projections can be tricky, said Curtis, who is also a member of CNBC’s Financial Advisor Council.
Source: https://www.cnbc.com/2025/07/22/aca-health-insurance-trump-taxes.html