You have probably heard how those on the Affordable Care Act (ACA) will see their premiums skyrocket in 2026. However, when we look at the numbers, some people may see their premiums decline. We look at the significant retiree healthcare changes in 2026 and tax strategies to keep your healthcare premiums as low as possible.
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Quick recap
Bryan discussed changes to the Affordable Care Act that occurred during the government shutdown, including reductions in tax credits that would result in higher health insurance premiums for cross-border clients. He presented a comparison of healthcare credits between 2025 and 2026, showing how credit thresholds would decrease for higher-income individuals in the latter year. Bryan emphasized the importance of tax planning for individuals on the ACA. He suggested strategies to minimize income and qualify for healthcare credits, inviting listeners to schedule a consultation for more information on cross-border retirement planning.
Summary
ACA Changes for Cross-Border Retirees
Bryan discussed changes to the Affordable Care Act (ACA) for cross-border clients who retire and seek health insurance. He noted that during the recent government shutdown, there were significant changes to the ACA, including a reduction in tax credits, which would result in higher health insurance premiums. Bryan explained that the higher the tax credit, the lower the health insurance premiums would be.
Healthcare Credit Threshold Changes
Bryan presented a comparison of healthcare credits between 2025 and 2026, showing that for couples aged 62 living in Milford, Michigan, credits would decrease for incomes above $75,000 in 2026, disappearing entirely for incomes over $85,000, while in 2025, credits were available up to $100,000. Bryan noted that single individuals would lose credits at $62,000 in 2026, contrasting with the higher threshold in 2025.
Tax Planning for Healthcare Credits
Bryan discussed the importance of tax planning for individuals on the Affordable Care Act, highlighting how a small increase in income can significantly reduce healthcare credits and increase premium costs. He suggested strategies to minimize income, such as taking larger retirement account withdrawals in 2025 and drawing from brokerage or Roth accounts in 2026, to qualify for healthcare credits. Bryan emphasized the need for a tax plan in 2026 and invited listeners to schedule a consultation for more information on cross-border retirement planning.