Earn Just Over the Subsidy Limit for 2027? Here's What Happens

If your household earns just a little too much, the price of a Marketplace plan can jump by hundreds of dollars a month. Here's why, and what you can do about it.

The 400% line is back

From 2021 through 2025, temporary rules let higher-income households get Marketplace tax credits. Those rules ended after 2025. Under current law, tax credits are generally only available if your household earns up to 400% of the federal poverty level.

For 2027 coverage, that line is roughly:

• $63,840 for one person
• $86,560 for a household of two
• $109,280 for a household of three
• $132,000 for a family of four

These numbers are for the 48 contiguous states. Alaska and Hawaii are higher.

Why one dollar over can cost you thousands

The tax credit doesn't shrink gradually past 400%. It stops. A household that earns $1 over the line can go from a heavily discounted premium to paying the full price for the same plan.

It can also catch you at tax time. If you get a tax credit during the year and your actual income ends up over the line, you may have to pay that credit back when you file.

What you can do

• Estimate your 2027 income carefully, especially if you're self-employed or your income changes year to year.
• Ask your tax professional whether pre-tax retirement contributions or other deductions could lower the income that counts.
• Compare private health insurance. Private plans are priced on age, location, and health, not income, so the 400% line doesn't affect them. For healthy households over the line, the monthly premium is often lower than a full-price Marketplace plan.

Private plans can use medical underwriting, so not everyone qualifies, and some conditions may be excluded or priced differently. Marketplace plans must cover pre-existing conditions. That's why it's worth looking at both side by side.

See where you land

If you're close to the line, the quick quote on my homepage shows your estimated Marketplace price and a private plan estimate in under a minute. Or send me your details and I'll walk you through what you actually qualify for.