Health Insurance Insider – October 9, 2025
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The Subsidy Cliff & What You Need to Know NOW:
💵 The expanded healthcare tax credits implemented during COVID-19, which helped eliminate the “subsidy cliff” for those earning more than 400% of the Federal Poverty Level (FPL) are set to expire.
⚖️ If Congress doesn’t act, the pre-COVID rules will return. The “cliff” means that if your income exceeds that 400% FPL (or $62,600) threshold by even one dollar, you could lose your entire tax credit and have to pay it back.
Strategic Planning is Key 🗓️
⚠️ For the self-employed and others who make more than 400% FPL, it’s crucial to prepare now.
The existing tax credits aren’t going away entirely, but they will revert to their limited pre-COVID amounts.
- If you’re over the $62,600 mark, you may need to look at options other than Healthcare.gov.
- In Utah, group plans may be 20-21% less expensive and are a viable alternative for the self-employed to explore immediately.
🗓️ Don’t wait! We must strategize now by considering a group plan. If Congress extends the tax credits by January 1st, we can always cancel and move you back to the individual marketplace during a potential special enrollment period.
Let’s talk now about securing your best healthcare strategy for 2026. Call us at 801-901-7800.
