The so-called subsidy cliff for Affordable Care Act health insurance premiums is about to return in 2026.

But there are steps households can take to avoid the cliff — and potentially save thousands of dollars on premiums next year, according to financial planners.

The subsidy cliff refers to the strict income threshold households must meet to qualify for premium tax credits . Those tax credits, or subsidies, make monthly insurance premiums more affordable for 22 million Americans who purchase health plans through the ACA marketplace, the vast majority of enrollees.

Before 2021, households with incomes at or below 400% of the federal poverty line were eligible for subsidies. Anyone earning more — even $1 more — was ineligible. Those individuals had to pay the full, unsubsidized ACA

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