Can those earning over $500K annually get ACA subsidies?
TL/DR –
Households earning over $500,000 per year are no longer eligible for subsidies under the Affordable Care Act. This change comes after the expiry of temporary legislation passed in 2021, which removed income caps for subsidy eligibility until December 2025. Now, only households earning between 100-400% of the federal poverty line ($33,000 for a family of four in 2026) are eligible, making the cut-off for a four-person household $128,600.
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South Dakota News Watch Report: Income Cap Returns for Affordable Care Act Subsidies
As of now, those with annual earnings exceeding $500,000 are not entitled to subsidies under the Affordable Care Act, according to new changes.
Previously, a temporary legislative action in 2021 lifted the income limits for those eligible for subsidies, effective until December 2025.
The American Rescue Plan, in conjunction with the Inflation Reduction Act, both passed in 2021, were responsible for this change. They abolished the income cap and extended increased subsidies until 2025. These actions also ensured that enrollees would not spend more than 8.5% of their household income on coverage.
However, after 2025, the standard subsidy criteria was reinstated as Congress did not extend these enhancements. From this point, only households earning between 100-400% of the federal poverty line could receive subsidies. In 2026, the poverty line for a family of four is defined as $33,000.
In simpler terms, a family of four with a household income exceeding $128,600 in 2026 would not qualify for subsidies.
This information serves to clarify certain claims.
References
Congress.gov: Enhanced Premium Tax Credit and 2026 Exchange Premiums: Frequently Asked Questions
HealthInsurance.org: What are the income limits for ACA premium subsidies?
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