Marketplace insurance after the OBBBA

The One Big Beautiful Bill Act (OBBBA) reshaped many parts of the tax and health coverage landscape, and one of the areas most affected is the Affordable Care Act (ACA) Marketplace. For tax professionals, these changes matter because clients relying on Marketplace plans for coverage will see significant shifts in how they enroll, pay and remain insured.

Understanding these new rules allows tax pros to guide clients with both compliance and practical planning. Let’s walk through the major changes and their ripple effects.

One of the most significant marketplace changes under OBBBA is the end of automatic reenrollment for individuals who qualify for premium tax credits. In the past, many self-employed taxpayers or lower-income clients who received subsidies could simply allow their coverage to roll over each year. Now, those taxpayers must actively verify their eligibility for credits annually. This may sound like a minor adjustment, but it introduces additional paperwork and creates the risk of losing subsidies if deadlines are missed.

Another major impact is the reduction in the scope of premium tax credits. The OBBBA trims the available assistance, meaning Marketplace enrollees will likely face higher out-of-pocket costs. Families who had relied on generous subsidies to make coverage affordable will feel the pinch first.

By: National Association of Tax Professionals

August 26, 2025