What changed for 2027 health insurance: tax credits, the 400% cliff and new rules
Key takeaways
- The enhanced premium tax credits ended, and Congress has not extended them. The 400% FPL income limit is back for 2027.
- For a single person, the cliff is $63,840. For a family of four, it is $132,000 (48 states and D.C.).
- There is no cap on repaying extra tax credits, so an accurate income estimate matters.
- The out-of-pocket maximum rises to $12,000 for an individual and $24,000 for a family.
- Open Enrollment on HealthCare.gov runs November 1, 2026 through January 15, 2027.
If you buy your own health insurance, 2027 brings bigger changes than most years. The extra tax credits many people had since 2021 are gone, a hard income limit is back, and a few enrollment rules have tightened. Here is what changed and what to do about it before you pick a plan.
Did the extra premium tax credits come back for 2027?
No. The enhanced tax credits Congress passed in 2021 ended when 2026 began, and as of October 2026 Congress has not brought them back. For 2027 coverage, the original Affordable Care Act rules apply:
- Tax credits are generally available to households earning between 100% and 400% of the federal poverty level (FPL).
- Above 400% FPL, you don't qualify for a credit at all, no matter how expensive your plan is.
- Below the cliff, you're expected to pay a set share of your income toward a benchmark silver plan. For 2027 that share runs from 2.15% to 10.22% of income, according to the IRS.
If Congress changes the rules later, your agent can update your application. Until then, plan on the original rules.
What is the 400% FPL subsidy cliff for 2027?
2027 coverage uses the 2026 poverty guidelines. Here is where the cliff falls in the 48 contiguous states and D.C. (Alaska and Hawaii have higher limits):
| Household size | 100% FPL | 400% FPL (cliff) |
|---|---|---|
| 1 | $15,960 | $63,840 |
| 2 | $21,640 | $86,560 |
| 3 | $27,320 | $109,280 |
| 4 | $33,000 | $132,000 |
The income that counts is your expected modified adjusted gross income (MAGI) for 2027, not your take-home pay. Earning even a dollar over the line can mean paying full price. That makes your income estimate more important than ever, especially if you're self-employed.
Can I lower my income to stay under the cliff?
Some contributions reduce MAGI. Contributions to a health savings account (HSA), a traditional IRA, or a self-employed retirement plan such as a SEP-IRA or solo 401(k) can lower the income the Marketplace uses. Whether this works for you depends on your taxes, so ask your tax professional before you count on it. See our guide to health insurance for the self-employed for more.
What if my income ends up higher than I estimated?
Starting with 2026 tax returns, there's no longer a cap on how much extra tax credit you pay back. If your real income is higher than your estimate, you could owe the full difference when you file. Report income changes to the Marketplace during the year so your monthly credit stays close to what you'll actually qualify for.
How much are premiums going up?
Insurers proposed a median increase of about 15% for 2027, according to KFF's review of rate filings. Your actual price depends on your state, age, plan and tax credit. Final 2027 prices are available when Open Enrollment opens on November 1.
What else changed for 2027 plans?
- Higher out-of-pocket maximum. The most you can pay for covered in-network care in a year is $12,000 for an individual and $24,000 for a family, up from $10,600 and $21,200 in 2026.
- Bronze plans work with an HSA. Bronze and catastrophic Marketplace plans now count as HSA-eligible. For 2027 you can contribute up to $4,500 (self-only) or $9,000 (family), plus $1,000 if you're 55 or older.
- No more monthly low-income enrollment. The Special Enrollment Period that let people under 150% FPL sign up any month has ended. Outside Open Enrollment, you now need a qualifying life event like losing coverage, moving or having a baby.
- Narrower eligibility for some immigrants. Starting January 1, 2027, tax credits are limited to certain groups of lawfully present immigrants, such as green card holders. Others can still buy a plan but may not get a credit.
What if my insurance company is leaving?
Several insurers are leaving some state Marketplaces for 2027. Cigna is leaving the individual market in all 11 states where it sold plans. If your insurer is leaving, you'll get a notice, and the Marketplace may move you to a similar plan with a different company. That plan may not include your doctors, so it's better to choose one yourself.
When is Open Enrollment for 2027?
On HealthCare.gov, Open Enrollment runs November 1, 2026 through January 15, 2027. Enroll by December 15 for coverage that starts January 1. State-run Marketplaces set their own deadlines. See enrollment dates for details.
What should I do before I renew?
- Update your 2027 income estimate, and check where it falls against the 400% line.
- Compare your renewal price with other available plans. Don't just let it roll over.
- Confirm your doctors and prescriptions are covered by any plan you're considering.
- If you're self-employed, talk with your tax professional about HSA or retirement contributions.
Frequently asked questions
Will my plan renew automatically for 2027?
If your plan is still offered, you may be re-enrolled automatically. Your premium and tax credit can change a lot this year, so it's worth reviewing your options before December 15.
I make just over 400% FPL. Do I get any help?
Not under the current rules. Above 400% FPL there's no premium tax credit. Lowering your MAGI with contributions like an HSA or retirement plan may bring you under the line. Ask your tax professional.
Is a bronze plan a good idea now?
It can be for some people. Bronze plans have lower premiums and now work with an HSA, but you pay more when you get care. An agent can compare costs for how you actually use care.
Does it cost more to use an agent?
No. Agents are paid by the insurance company, and your premium is the same either way.
This guide is general information, not tax or legal advice. Figures are from HHS, CMS, the IRS and KFF as of October 2026. Rules and dates can change; confirm details for your state with your agent or the official source.