If you need help paying for health insurance in 2025, your eligibility will depend on your income and state of residence. Under the Affordable Care Act (ACA), subsidies have helped reduce costs for millions of Americans. However, the enhanced subsidies that were introduced under the American Rescue Plan Act (ARPA) and extended through the Inflation Reduction Act (IRA) are set to expire at the end of 2025. The Trump administration is not expected to renew these enhanced subsidies, which could make coverage more expensive for many Americans purchasing insurance through the ACA marketplace.1
As of now, you may still qualify for ACA subsidies if your health insurance costs exceed 8.5% of your household income. However, policy changes under the Trump administration could impact subsidy availability, Medicaid expansion, and other aspects of healthcare access.1 The benchmark plan used to calculate subsidies remains the second-lowest-cost Silver plan available in your state’s marketplace.
If you rely on ACA subsidies to afford coverage, it’s important to stay informed about potential legislative changes and explore alternative options as policies evolve.
Here are updated tips for estimating your expected household income for 2025 before applying for health insurance savings:
- Estimate Your Expected Household Income for 2025
- Start with your Adjusted Gross Income (AGI) from your most recent tax return. If you don’t have an AGI, estimate using federal taxable wages and other income sources.
- Add any non-taxable income that applies, such as tax-exempt Social Security benefits, foreign income, and tax-exempt interest.
- Adjust your estimate based on expected raises, job changes, or additional income sources during the year.2
- Include the Right People in Your Household
- Count yourself, your spouse, and all dependents you claim on your federal tax return, even if they don’t need coverage.
- If a dependent earns enough to file a tax return, their income must be included in your estimate.3
- Know the 2025 Income Limits for ACA Subsidies
- Individuals: Income between $15,060 and $60,240 (100%-400% of the Federal Poverty Level) qualifies for subsidies.
- Families: A household of four earning up to $124,800 may still qualify for financial help.4
- Report Any Changes During the Year
- If your income changes after you apply, update your Marketplace application as soon as possible to ensure you receive the correct subsidy.5
Wherever you are in your health insurance journey, Health Plans of America is here to help connect you to a licensed insurance agent.