If you bought a health plan through the United States Health Insurance Marketplace and you receive government help to pay the monthly premium, there is a change you should review before renewing your coverage. Beginning in 2027, some immigrants who currently qualify for the Obamacare premium tax credit will no longer receive that aid and will have to pay the full cost of their policy.
The change is part of the provisions of the budget law approved in 2025. The Internal Revenue Service (IRS) published a proposed regulation to implement the new restrictions on the Premium Tax Credit, the tax credit that lowers the cost of health insurance purchased through the Marketplace. The official document is published in the Federal Register.
The consequence can be felt directly in the family budget: a person could keep their insurance, but without the subsidy that until now helped pay the monthly premium.
Which immigrants could lose the health insurance premium tax credit?
The new rule limits financial assistance for immigrants who live legally in the United States but whose status is not included in a narrower category of beneficiaries.
According to the guidance published by the Centers for Medicare and Medicaid Services (CMS), starting with the 2027 coverage year, federal subsidies will be available to U.S. citizens, nationals, and certain immigrants deemed eligible.
Among these are:
This means that other immigrants who have lawful presence in the country but do not belong to those categories could still enroll in a Marketplace plan if they meet the enrollment requirements, although they would no longer receive the premium tax credit or the cost-sharing reductions. In other words, they would have to pay the full price of their insurance.
The CMS official guide on the 2027 changes explains which statuses are covered and how eligibility will be verified.
It’s important to clarify something: undocumented immigrants were already excluded from the possibility of obtaining Marketplace coverage under federal rules. The change does not mean that previously everyone could receive this credit and now will lose it.
When will the IRS change take effect?
The restriction on subsidies for immigrants who do not fall into the eligible categories will begin with 2027 coverage. However, there is another modification that could affect certain filers starting in the 2026 tax year.
The Federal Register explains that people with lawful presence whose family income is below 100% of the federal poverty level and who cannot access Medicaid due to their immigration status will lose an exception that previously allowed them to receive the tax credit.
Therefore, not all changes have the same effective date. It is wise to review your specific situation before assuming the aid will remain available.
What should you review before enrolling or renewing your health insurance?
Open enrollment for 2027 coverage began on November 1. If you use the Marketplace, this is the time to update your information and check what kind of help you may receive.
CMS recommends that immigrants update their application with documents that reflect their immigration status. If the system cannot verify it electronically, additional documentation may be requested. In the federal Marketplace, the deadline to respond to certain verification issues is 95 days.
You can check your eligibility and compare plans on HealthCare.gov. For most states using the federal platform, December 15 is the deadline to choose a plan that starts January 1, 2027.
Losing the subsidy does not always mean losing coverage, but it can completely change how much you pay each month. And in a family budget where every dollar counts, renewing without first checking eligibility can be quite costly.
