Why the cheapest premium is often the most expensive plan
Every plan quote leads with the monthly premium, because it is the number that sells. But your true yearly cost is 12 monthly premiums plus whatever you pay for care — and the second half varies enormously. A Bronze plan at $240 a month with a $7,500 deductible and a $12,000 out-of-pocket maximum costs $2,880 a year before you see a single doctor. A Gold plan at $520 a month costs $6,240 before care. If you stay healthy, Bronze wins easily. If you land in hospital, the totals flip: $14,880 for Bronze against $12,240 for Gold in the worked example in our Bronze vs Silver vs Gold guide. The premium is the price of the ticket; the deductible and out-of-pocket maximum are the size of the bet. This calculator prices all three years — healthy, typical and bad — side by side so you can see the bet before you take it.
The 2027 subsidy cliff, in plain numbers
From 2021 to 2025, enhanced premium tax credits meant help faded out gradually and nobody paid more than 8.5% of income for a benchmark plan. Those rules expired at the end of 2025. For 2027 the original rule is back: the credit exists between 100% and 400% of the poverty line and vanishes entirely above 400%. The 400% lines for 2027 coverage (2026 HHS guidelines) are:
| Household size | Poverty line (100%) | Subsidy cliff (400%) |
|---|---|---|
| 1 | $15,960 | $63,840 |
| 2 | $21,640 | $86,560 |
| 3 | $27,320 | $109,280 |
| 4 | $33,000 | $132,000 |
| 5 | $38,680 | $154,720 |
| 6 | $44,360 | $177,440 |
| Each extra person | +$5,680 | +$22,720 |
Alaska and Hawaii use higher guidelines, so their cliffs are higher too — the checker above adjusts automatically. Below the cliff, the credit is calculated so that you pay a set share of income toward the benchmark (second-lowest-cost Silver) plan: from 2.15% of income under 133% of the poverty line up to 10.22% between 300% and 400% (IRS Revenue Procedure 2026-26). Two warnings belong with this table. First, if you take advance credit during the year and your final income lands over the cliff, there is no cap on repayment anymore — you can owe the whole year of credit back at tax time. Second, a few states add their own subsidies on top of the federal credit, including help for some people above the federal line; check your state marketplace before assuming you get nothing.
Bronze, Silver or Gold: the short version
Bronze plans cover about 60% of average care costs: lowest premiums, highest deductibles. They fit people who rarely use care and could pay the out-of-pocket maximum from savings if the worst happened — ideally paired with an HSA. Silver plans cover about 70%, and they carry a benefit no other tier has: if your income is between 100% and 250% of the poverty line, cost-sharing reductions cut a Silver plan’s deductible and copays sharply, which makes Silver the strongest choice for most people in that income range. Gold plans cover about 80%: highest premiums, low deductibles, and usually the cheapest year overall if you take regular medication, see specialists often, or have surgery planned. Platinum exists in some states at about 90%. The tiers are about when you pay, not the quality of care — the same doctors and hospitals can appear in any tier.
How this calculator works
For the year you choose, the comparer charges each service either at its copay (if you entered one) or through the deductible-then-coinsurance path, caps what you pay for care at the plan’s out-of-pocket maximum, and adds 12 months of premiums. For a hospital year it simply uses the out-of-pocket maximum, which is what a serious stay costs on almost every plan. The cliff checker divides your expected 2027 MAGI by the 2026 HHS poverty guideline for your household size and region, compares it with the 400% line, and — if you enter a benchmark premium — estimates the credit using the IRS 2027 applicable-percentage table. Estimates only: your real allowed amounts, network and final subsidy are set by your plan and the Marketplace.
Frequently asked questions
What is the health insurance subsidy cliff in 2027?
For 2027 coverage, the premium tax credit stops completely when household income (MAGI) goes above 400% of the federal poverty line. It is a cliff, not a phase-out: $1 over the line means no credit at all. The line is $63,840 for one person and $132,000 for a family of four in the 48 contiguous states and DC (2026 HHS poverty guidelines, which 2027 coverage uses). The enhanced credits that softened this cliff from 2021 to 2025 expired, and Congress has not renewed them.
How much income is too much for an ACA subsidy in 2027?
Anything above 400% of the poverty line for your household size: $63,840 (1 person), $86,560 (2), $109,280 (3), $132,000 (4), $154,720 (5) or $177,440 (6) in the contiguous US. Alaska and Hawaii lines are higher. Below the line, the credit is set so you pay between 2.15% and 10.22% of your income toward the benchmark Silver plan (IRS Revenue Procedure 2026-26).
Is the plan with the cheapest premium always the cheapest overall?
No. Your true yearly cost is 12 months of premiums plus what you pay for care. A Bronze plan can save $200 a month in premiums yet carry a $12,000 out-of-pocket maximum, so one hospital stay can make it thousands more expensive than a Gold plan for the year. Compare plans in a healthy year, a typical year and a bad year before you choose — that is what the calculator above does.
How can I lower my MAGI to stay under the subsidy cliff?
Pre-tax contributions lower your modified adjusted gross income: traditional 401(k) or 403(b) contributions, HSA contributions (if you have an HSA-eligible high-deductible plan) and traditional IRA contributions are the common levers. If you are $800 over the line, an extra $800 of pre-tax contribution can bring you back under it and restore the whole credit. This page explains the maths; a tax professional can check your exact situation.
When is open enrollment for 2027 health insurance?
On HealthCare.gov, open enrollment runs November 1, 2026 to January 15, 2027. Enroll by December 15, 2026 for coverage that starts January 1, 2027. Some state-run marketplaces set slightly different dates, so check your state marketplace if you use one.
Does this calculator store or send my data?
No. Every calculation runs in your browser on your device. Nothing you type is uploaded, stored or shared, and there is no sign-up.
Read next: Bronze vs Silver vs Gold Health Insurance (2027): The True Total Cost, Worked Out
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