The End of Expanded ACA Tax Credits: What You Can Still Fix Before Open Enrollment Ends

If your health insurance premium went up this year—or you’ve been putting off reviewing your renewal—you’re not alone. Many people are feeling confused and frustrated as changes to ACA tax credits take effect.

ACA Open Enrollment is open through January 15.

That means there is still time to review your coverage and make changes for the year ahead.

Let’s walk through what’s happening, who this affects, and what you can still fix before the deadline.

How ACA Tax Credits Normally Work (The Simple Version)

When the Affordable Care Act was created, premium tax credits were designed to help people whose household income fell between 100% and 400% of the Federal Poverty Level (FPL) afford health insurance.

If your income was within that range, the government helped offset the cost of your monthly premium.

If your income was above that range, you typically paid full price for coverage.

That structure was in place for many years.

What Changed During COVID

At the beginning of COVID, the government temporarily expanded ACA tax credits to help more people maintain coverage during a time of economic uncertainty.

For a limited period, higher-income households—roughly those in the 500–600% of FPL range, and sometimes higher—also became eligible for tax credits, as long as premiums exceeded a certain percentage of their income.

This expansion meant:

• Many people qualified for financial help for the first time

• Monthly premiums were capped at more affordable levels

• Middle- and upper-middle-income families saw meaningful savings

These expanded credits were approved for a temporary, multi-year term, not as a permanent change.

What’s Expiring Now (and What’s Not)

ACA tax credits are not going away.

People whose household income falls within the original 100–400% FPL range may still qualify for subsidies.

What is expiring is the expanded eligibility for higher earners that was put in place during COVID.

As a result, some households are seeing:

• Reduced or eliminated tax credits

• Higher monthly premiums than in prior years

• Unexpected increases at renewal time

This change most commonly affects people who:

• Earn more than they did a few years ago

• Fall above the original ACA income limits

• Became accustomed to lower premiums during the expansion period

Why This Is Catching People Off Guard

Most ACA plans automatically renew if no action is taken. While that can feel convenient, it can also hide important changes.

Auto-renewal may mean:

• Income information wasn’t updated

• The applied tax credit amount changed

• Plan pricing or benefits shifted

• A different plan may now be a better fit

Many people don’t realize anything has changed until they see their January premium.

What You Can Still Fix Before January 15

Because Open Enrollment is still open, you can make changes now—even if your plan has already renewed.

1. Update Your Income Information

Tax credits are based on projected household income. Ensuring the information on your application is current is one of the most important steps you can take.

2. Compare Available Plans

The plan that worked last year may not be the most cost-effective option this year. Networks, prescription coverage, and pricing change annually.

3. Adjust Your Coverage Level

In some cases, moving between metal tiers (Bronze, Silver, Gold) can reduce overall costs based on how tax credits are applied.

4. Avoid Costly Auto-Renew Mistakes

Auto-renewal does not mean “best option.” It simply means the system kept you where you were.

What Happens After January 15

Once Open Enrollment closes, plan changes become much more limited.

After January 15, changes typically require:

• A Special Enrollment Period (SEP) due to a qualifying life event, or

• Alternative coverage options that can help bridge the gap until the next Open Enrollment

That’s why taking action before January 15 is so important.

Ready to Review Your Coverage?

If your premium increased, your tax credit changed, or you’re unsure whether your current plan still fits your needs, a review can help bring clarity.

I offer one-on-one ACA policy reviews to:

• Review how income information is entered on your application

• Explain how tax credits are being applied to your policy

• Compare available plan options and pricing

• Identify coverage gaps or more suitable alternatives

Appointments are limited as we approach the January 15 deadline.

If you’d like help reviewing your coverage, schedule time with me now while Open Enrollment is still open.

Click Here To Schedule Time With Me!