The premium tax credit enhancements that began in 2021 are set to expire after the 2025 plan year. 

Premium tax credits are currently set so that people are not required to pay more than 8.5% of household income for the benchmark silver plan, including those with higher incomes who were previously ineligible for financial assistance on the Marketplace. 

This is especially beneficial for older consumers whose age-rated premiums can otherwise be very expensive. For example, a 60-year-old earning $59,049 (405% FPL) in 2024 only had to pay about $418 per month for their benchmark Silver Marketplace plan. However, if the enhanced subsidies are not extended, the same individual would earn too much to qualify for tax credits and they would have to pay their full-priced premium of roughly $1,013 per month. 

In addition, the enhancements broadly lowered the income caps on premium contributions for all income levels, as well as eliminated the premiums of people with incomes up to 150% of the FPL ($21,870 for a single adult in 2024) who enrolled in benchmark Silver plans. 

If these enhancements are not renewed, beginning in 2026, some people will lose their eligibility for premium tax credits and have to pay their full premiums, while those with lower incomes may still be eligible but will receive smaller credit amounts that could affect the affordability of their Marketplace premiums.

You can use this Marketplace subsidy calculator to estimate the premium tax credit amounts that apply to you.