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SPECIAL ACA EDITION: The Big Beautiful Bill
Hosted by Cristian Gallardo, VP of Sales
How the BBB Impacts Exchange Plans
The One Big Beautiful Bill Act, or OBBA, passed under the Trump administration, is set to change how premium tax credits work. First, the ARPA subsidies expire after 2025. Starting in 2026, clients with incomes above four hundred percent of the federal poverty level will no longer qualify for premium tax credits, and those between three hundred and four hundred percent will see their monthly costs increase as enhanced subsidies disappear. In Covered California, that could mean average premiums rising by more than sixty percent unless the state steps in.
Impact in 2027
Then in 2027, OBBA adds more changes. Subsidy eligibility will be limited to certain immigration statuses, repayment caps on excess tax credits go away, and income verification rules get stricter, which means less flexibility for enrollments and renewals. Covered California may try to soften the impact, but on the federal exchange there’s no safety net, so the changes hit harder.
Prepare, Prepare, Prepare
Brokers should start preparing now by running cost scenarios, helping clients gather documents, and setting expectations early.
