The ACA subsidy is scheduled to shrink back to its pre-2021 rules in 2026, which could cause a sharp increase in your health insurance premiums. If your income goes even a dollar over the threshold, you may lose your premium tax credits entirely.
Right now, over 24 million Americans get premium tax credits to help reduce the cost of ACA health plans, according to a KFF report. Many of those people live right here in South Florida, in communities like Deerfield Beach, Greenacres, and Port St. Lucie. For them, the financial difference could mean the loss of thousands in savings.
At Absolute Best Insurance, we specialize in helping people throughout Florida understand their options. Our local agents in Tamarac, Vero Beach, and Micco can walk you through every detail of your ACA health plan and help you protect your subsidy now, before it’s too late.
What’s Changing With the ACA Subsidy in 2026?
The expanded ACA subsidy rules passed under the Biden administration are set to expire at the end of 2025. If that happens, premium tax credits will once again be capped at 400% of the federal poverty level.
That means if your income in 2026 goes over that cap, even by as little as $1, you may no longer qualify for any ACA subsidy. In 2025, the federal poverty line is set at $15,650 for an individual and $32,150 for a family of four.
A recent Axios report suggests that the Trump administration is likely to propose an extension of the enhanced subsidies, possibly with new eligibility restrictions. But nothing is confirmed yet, and the current rules remain in place.
“We always hope for a legislative fix,” says Stacy Murphy, Owner/Operator at Absolute Best Insurance, “but we don’t recommend waiting and seeing. People should plan based on the rules that are currently scheduled.”
How Losing Premium Tax Credits Could Affect Your Health Insurance
For many people, premium tax credits are the difference between being able to afford coverage and not. If the enhanced subsidy rules expire, a 60-year-old with an income just over the line could pay more than double in annual premiums compared to someone just under the threshold.
For example, in 2026, a single person in Deerfield Beach earning $62,000 could keep their ACA subsidy and pay around $6,200 in premiums. But someone earning $64,000 in the same zip code might pay over $14,000 out of pocket.
Income Planning Tips to Stay Eligible for the ACA Subsidy
There are several legal ways to manage your income and maintain ACA subsidy eligibility:
- Use Roth IRA withdrawals: Roth distributions generally don’t count toward your adjusted gross income (AGI).
- Contribute to pre-tax accounts: HSA and traditional IRA contributions can reduce your taxable income.
- Harvest capital losses: Selling investments at a loss can reduce your AGI by up to $3,000.
- Adjust your work schedule: Hourly or contract workers might choose to earn slightly less to stay under the limit.
If you live in places like Tradition in Port St. Lucie or Barefoot Bay in Micco, and you’re approaching retirement, these strategies could help you stay eligible without losing needed benefits.
“This isn’t some cheat code,” Murphy says. “It’s smart planning. And it’s something we help our clients with every day.”
What We’re Watching and What You Should Do Now
As of now, Congress has not extended the enhanced ACA subsidy beyond 2025. Without that extension, the income cap returns, and many enrollees will lose support.
We don’t want our neighbors from the Space Coast to Broward County waking up in January of 2026 to find out they owe thousands more. That’s why we’re urging clients to review their 2026 income estimates now.
How Absolute Best Insurance Can Help
We’ve spent over 20 years helping Florida families protect their access to affordable coverage. Our agents are based in:
We understand the neighborhoods, hospitals, and income patterns of each area. Whether you live near Indian River Medical Center in Vero Beach or close to Florida Medical Center in Broward, we can guide you through every part of the process.
We specialize in ACA plans, Medicare coverage, dental, life, and supplemental health insurance. You don’t need to guess your way through enrollment. We’re here to help.
Act Before Open Enrollment Ends
Time is limited. If you wait until 2026, it might be too late to fix your income or adjust your ACA plan.
Visit your nearest Absolute Best Insurance office to review your 2026 eligibility and protect your ACA subsidy before the rules change. Can’t come to us? No problem, just click here or give our team a call for a free, no-obligation quote. We even make house calls!
- Tamarac: (954) 642-2101
- Deerfield Beach: (754) 778-8700
- Greenacres & Vero Beach: (561) 420-0280
- Port St. Lucie: (772) 828-2840
- Sebastian (Micco): (772) 321-0813