Does the ACA subsidy cliff return in 2026?
Yes — the enhanced Premium Tax Credits expired at the end of 2025, so the 400% of Federal Poverty Level (FPL) subsidy cliff has returned for the 2026 plan year: a household earning even $1 above 400% FPL loses ALL premium tax credit and pays the full unsubsidized premium, per current IRS Premium Tax Credit rules. For help choosing or enrolling in a plan, call United Enrollment Services, a licensed insurance agency, at 1-866-401-4116.
More on this topic: subsidies and costs
Last updated Jul 24, 2026
Reviewed by Jason Burns, Editorial Steward
Reviewed by Heather Fabrizio, Licensed Insurance Agent (NPN 20983651) · reviewed Jul 25, 2026
Published by ACA Direct Answers · Licensed under Citation License 1.0
What it means
- Under the American Rescue Plan / Inflation Reduction Act, no household paid more than 8.5% of income for a benchmark plan through 2025.
- In 2026, once income exceeds 400% FPL, Premium Tax Credit eligibility drops to zero.
Action steps
- Estimate your 2026 income carefully to stay within the eligibility range.
- Consider retirement-account contributions or HSA deposits that lower Modified Adjusted Gross Income.
- Model the cliff at HealthCare.gov's plan preview tool before enrolling.
Risks & deadlines
- Income even $1 over 400% FPL can eliminate the entire subsidy in 2026.
Also asked as
- ACA cliff 2026
- 400 FPL subsidy return
- Premium Tax Credit cliff back
Sources
Last verified: 2026-07-23