How 2027 subsidies changed
From 2021 through 2025, enhanced premium tax credits capped what most households paid for a benchmark silver plan. Those enhanced credits expired.
For 2027 coverage, subsidies follow the original formula again:
- You're expected to pay a set share of income, from about 2% to just over 10%.
- The subsidy covers the gap between that share and the benchmark premium.
- Benchmark premiums rise sharply with age, so older applicants feel the change most.
Many people who paid little in 2025 will see a much higher bill at renewal.
The 400% poverty-level cliff
The biggest change is the cliff. Above 400% of the federal poverty level, there is no subsidy at all.
Example cliff lines (2026 guidelines, used for 2027 coverage)
- Single adult: about $63,840
- Couple: about $86,560
- Family of four: about $132,000
One extra dollar of income can remove the whole credit. A 55-year-old couple just over the line can pay full price — often well over $1,500 a month.
Self-employed income moves around, so it's worth checking where you land.
When the exchange is still the better deal
Private plans aren't for everyone. HealthCare.gov is usually the better choice when:
- Your subsidy covers more than half the benchmark premium.
- You have a health condition a private plan may decline or limit.
- You're pregnant or expect major treatment soon.
- You need ACA protections like guaranteed issue and essential health benefits.
Open enrollment for 2027 runs from November 1. Enroll by December 15 for January 1 coverage.
When a private plan can cost less
If you get little or no subsidy, a private plan may cost less each month. This often fits:
- Self-employed and 1099 workers above the cliff
- Business owners and high earners
- Healthy early retirees who are not yet on Medicare
Many private plans ask health questions, and some are not ACA major medical insurance. A licensed advisor explains the trade-offs before you apply.
How this calculator works
It uses each state's average 2026 benchmark premium, the federal age curve and the 2027 IRS contribution percentages.
- Up to three children under 21 are counted, as on the exchange.
- Your income is compared with the poverty guideline for your household size.
- Alaska and Hawaii use their own, higher guidelines.
Estimate based on state averages — your actual price is confirmed at application.