ACA Premium Subsidy Cliff 2028 Extension Calculator
Under American Rescue Plan + IRA, the 400% FPL subsidy cliff was eliminated through 2025. Beyond 2025, Congress must extend or the cliff returns. Calculate your 2028 exposure both ways.
| Projected 2028 MAGI | — |
| Household size | — |
| 2028 projected FPL | — |
| Your % of FPL | — |
| Subsidy cap % | — |
| Max premium contribution | — |
| SLCSP annual cost | — |
| Extended subsidy | — |
| Cliff scenario subsidy | — |
| At-risk amount if no extension | — |
The Inflation Reduction Act (IRA 2022) extended American Rescue Plan's elimination of the ACA premium tax credit 'cliff' at 400% Federal Poverty Level (FPL) through 2025. Beyond 2025, the cliff returns unless Congress acts. Households earning 400-600% FPL face significant subsidy loss if not extended. Plan now for 2028.
How the Cliff Worked Before
Pre-ARPA: at 400% FPL, you got 0% subsidy. At 399% FPL, full subsidy. A $1 income increase could cost $5,000-$15,000 in lost subsidy — the 'cliff'. ARPA/IRA replaced cliff with 8.5% income cap at all income levels.
Post-IRA Mechanics
Premium contribution scales: 0% at <150% FPL → 8.5% at 400%+. Above 400%: still capped at 8.5% of income. Subsidy = SLCSP - max premium contribution. High earners (400-600% FPL) get smaller but real subsidy.
What Happens 2026+
Statute reverts: 400% FPL cliff returns 1 January 2026 unless Congress extends. Republican-controlled 119th Congress (2025-26) may extend partially or let lapse. Democratic-controlled would extend. Plan for both: have HSA-eligible plan + supplemental in case cliff returns.
2028 Projection Math
2028 FPL: ~ $16,300 + $5,800 per add'l person (3% indexing from 2024). 400% FPL family of 4 = ~$120K. If MAGI hits $125K and cliff returns, $0 subsidy. With extension: ~$10K subsidy. Difference is real: HSA + Roth + state plan strategies matter.
Last updated May 2026. Sources: CBPP ACA Subsidies, KFF ACA Calculator.