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Ask an Expert: Enhanced Premium Tax Credit (PTC) Expiration
If you’re confused about what enhanced tax credits are or why your Affordable Care Act (ACA) marketplace premiums are going up so much, you’re not alone. Our health policy experts are here to help answer your frequently asked questions.
Let’s start with the basics. Most people who get health coverage through the ACA marketplace get a premium tax credit, which lowers their premium. Congress increased (or enhanced) the premium tax credit in 2021, lowering costs even more. Unless Congress acts, those enhancements will expire at the end of 2025, which means people will be responsible for paying a larger share of their premium. Learn more about what this means for you:
Why are my ACA premiums increasing in 2026?
Premiums (monthly costs) for ACA marketplace plans are increasing in 2026 because Congress has not acted to extend the premium tax credit enhancements. If the enhancements expire, enrollees who get premium tax credits will be responsible for a much larger portion of their premium.
People who don’t get premium tax credits will also see a big premium increase for marketplace plans due to congressional inaction. That’s because if the enhancements end, insurers expect healthier people to drop health insurance first, making the remaining enrollees more expensive to cover.
How much will my marketplace premium increase without the enhanced tax credits?
KFF has developed an ACA subsidy calculator to help estimate how people’s premiums will be impacted. Most people’s health insurance premiums would more than double in 2026.
When is the enhanced premium tax credit end date?
The premium tax credit enhancements are set to end December 31, 2025, unless Congress extends them.
Who will be affected if the enhanced subsidies expire?
Unless Congress acts, nearly 22 million people will see their health care costs dramatically rise or will lose their health coverage altogether.
The premium tax credit enhancements help people buy coverage on their own when their employers don’t provide it. The people who will be impacted if the enhanced tax credits expire include part-time workers, gig workers, small business owners, self-employed people, and people who work in industries that don’t usually provide health benefits.
I make over 400% of the federal poverty level (FPL), what will my premium be?
If the premium tax credit enhancements expire, marketplace enrollees with incomes over 400 percent of the federal poverty level (around $63,000 for an individual or $129,000 for a family of four) will no longer receive any premium tax credits. Over half of these enrollees are older adults, aged 50-64.
You can use the KFF ACA subsidy calculator to estimate how your premiums will be impacted. And see our fact sheet for tips on how to calculate your Modified Adjusted Gross Income (MAGI), which is used to determine premium tax credit eligibility.
What can I do to lower my marketplace premium for 2026?
Enrollees can change to a lower-premium health plan for the coming year during open enrollment (November 1, 2025–January 15, 2026 in most states). States open “window shopping” around mid-to-late October for enrollees to preview health plans. Keep in mind that choosing a plan with a lower premium could mean you pay more when you need health care. An enrollment assister can help you compare plans for free.
