Earn Too Much for an ACA Subsidy? Your Options for 2027
If your household income is above 400% of the federal poverty level, you get no premium tax credit in 2027. You pay the full Marketplace price. I am an independent broker licensed in 31 states, and I will put the full-price Marketplace number next to private PPO options so you can see which one actually costs you less.
Over the limit and healthy? A private, medically underwritten plan is often cheaper than full-price Marketplace coverage. Check your options →
The 2027 income limits (the “subsidy cliff”)
For 2027 coverage, the tax credit stops at 400% of the 2026 federal poverty guidelines. There is no phase-out: earn one dollar over the line and the credit drops to zero.
| People in your household | Subsidy stops above (2027) |
|---|---|
| 1 | $63,840 |
| 2 | $86,560 |
| 3 | $109,280 |
| 4 | $132,000 |
| 5 | $154,720 |
| 6 | $177,440 |
48 states and DC. Limits are higher in Alaska ($79,800 for one person) and Hawaii ($73,440). “Income” means your estimated 2027 modified adjusted gross income; for self-employed people that is net business income after expenses, not gross revenue.
Why this matters more than it used to
- The enhanced subsidies ended after 2025. From 2021 to 2025 there was no hard cut-off. Now there is, so many self-employed people and business owners who got help before get none.
- No more repayment cap. If you take an advance tax credit and your income ends up over the line, you pay all of it back when you file. For anyone whose income moves around, like 1099 and commission earners, that is a real tax-time risk.
- Full price is expensive. Without a credit you pay the sticker price for a Marketplace plan, which is where private plans often come in lower for healthy applicants.
Your options when you are over the limit
- Private PPO plan (medically underwritten). You answer health questions. If you are approved, premiums are often lower than full-price Marketplace plans, networks are broad and nationwide, and you can apply any time of year.
- Full-price Marketplace (ACA) plan. Guaranteed acceptance, pre-existing conditions covered, and all the essential health benefits. The right call if you have ongoing health conditions or are planning a pregnancy.
- Bring your income under the line. Retirement contributions (SEP-IRA, solo 401(k)), HSA contributions and the self-employed health insurance deduction can all lower the income that counts. Run the numbers with your tax professional before you enroll.
- Add supplemental coverage. Accident, critical-illness, hospital, dental and vision plans can sit alongside either option.
A private plan usually wins if
- You are reasonably healthy with no major ongoing conditions
- Your income is over the 400% line
- You want a nationwide PPO network
- You need coverage outside Open Enrollment
Full-price ACA usually wins if
- You have significant pre-existing conditions
- You are pregnant or planning a pregnancy
- You take high-cost prescriptions or see specialists often
- You can get under the line and qualify for a credit
If you land in the second column, I will tell you so rather than sell you a plan that will not cover you.
Questions I hear a lot
What is the income limit for ACA subsidies in 2027?
400% of the federal poverty level: $63,840 for one person and $132,000 for a family of four in the 48 contiguous states and DC.
What happens if my income goes over 400% after I get a subsidy?
You repay the full advance credit when you file your taxes. For tax years after 2025 there is no cap on the repayment.
Can I get a private plan outside Open Enrollment?
Yes. Private, medically underwritten plans can be applied for any time of year. Marketplace plans need Open Enrollment or a qualifying life event.
When is Open Enrollment for 2027?
On HealthCare.gov it runs November 1, 2026 to January 15, 2027. Enroll by December 15 for coverage that starts January 1. Some state-run exchanges use different dates.
Is a private plan the same as an ACA plan?
No. Private plans are medically underwritten, approval is not guaranteed, and covered benefits vary by plan. I will walk you through exactly what is and is not included before you apply.
Do you charge a fee?
No. The insurance company pays the broker. You never pay me anything.
Related: self-employed guides by state · health insurance in all 31 states · COBRA vs. Marketplace vs. Private calculator
See your real numbers side by side
Tell me your ZIP code and household size. I will compare full-price Marketplace plans with private options. No fee, no obligation.
Posey Health Solutions · National Producer Number 20609967 · licensed in 31 states. Income limits are from the 2026 HHS poverty guidelines used for 2027 coverage. This page is general information, not tax advice or advice about a specific plan. Private plans are medically underwritten and approval is not guaranteed. Plan availability varies by state and county.