The renewal guide · Part 1 of 6
The sticker price is almost never your price.
Most households qualify for a federal discount on Marketplace health plans, paid straight to the insurance company every month. Here's how it actually works, in the time it takes to pour a coffee.
It's a discount based on your income.
The official name is the premium tax credit. The government looks at your household income and size, decides what a “fair share” of your income is for health coverage, and pays the difference between that and the cost of a benchmark plan in your county. Lower income, bigger discount. The discount comes off your monthly bill automatically, so you never have to front the money.
One Silver plan sets the discount for everyone.
Your discount is measured against the second-cheapest Silver plan in your county, the “benchmark.” When that plan's price moves from one year to the next, your discount moves with it, even if nothing about your life changed. This is the single biggest reason your price can change at renewal, and why it's worth looking every year.
Earning below a certain point unlocks a second discount.
Some households qualify for extra savings that shrink deductibles and copays, but only on Silver plans. If you qualify, a Silver plan can easily beat a Bronze plan that looks cheaper per month. Our plan finder flags this for you automatically.
There's a hard cutoff at the top.
Household income above four times the federal poverty level means no discount at all, and it's a cliff, not a slope. A single dollar over the line can cost thousands per year. If your income hovers anywhere near the cutoff, that's exactly the conversation to have with Jax before the year starts.
Tell the Marketplace when your income changes.
Your discount is based on your estimatefor the year, then squared up on your tax return. Get a raise in March and say nothing, and you could owe some of the discount back the following April. Report the change promptly and your monthly price adjusts instead, with no surprise bill. Almost nobody knows this, and it's the most avoidable pain in the whole system.
Quick question
Your income goes up $8,000 in March. What should you do?
See what this means for your household.
Your estimated 2026 savings, calculated live from the same federal system HealthCare.gov uses.