Dear Client,

We hope you’re doing well! We’re reaching out a little early this year with some important notes regarding the upcoming Open Enrollment Period (OEP). First of all, there are no changes to the OEP timeline - it will begin November 1st and we can’t take any action until that time. However, there will be some changes for 2026 and we want to give you time to plan and prepare. 

The purpose of this email is to:

• Convey the changes regarding tax subsidies
• Ensure you understand the “subsidy cliff” and how it impacts you
• Review your MAGI (Modified Adjusted Gross Income) for 2026
• Discuss next steps

Note: If you are not receiving a tax subsidy and/or you do not list your MAGI on your application, you can skip to “Next Steps”.

Changes Regarding Tax Subsidies

Tax subsidies (also known as Advanced Premium Tax Credits - APTC) are determined by the Modified Adjusted Gross Income (MAGI) listed on your application. If you enrolled in your 2025 health plan through Connect for Health Colorado, and your MAGI was within a certain threshold, the cost of your monthly premium was offset by a federal tax subsidy. These federal tax subsidies are expiring at the end of 2025. Colorado will be offering a state tax subsidy (APTC) for qualifying individuals. (Further details on this in the next section.) Colorado will also be providing assistance to qualifying individuals through the Colorado Premium Assistance program (CPA). Please read to the end to see how you can find out your APTC and CPA qualifications. 

Subsidy Cliff

The “Subsidy Cliff” will be returning in 2026. If your MAGI is under 400% of the Federal Poverty Level (FPL), you will receive a subsidy. Subsidies will be incrementally adjusted up to 400% FPL. However, for 2026 enrollments, there will be a subsidy cliff at 400% FPL. This means that if your MAGI increases above that threshold by the end of the year, even by $1, you will be required to pay back the entire subsidy you received in 2026. 

Here’s a breakdown of annual income levels for 100% - 400% FPL for plan year 2026:

For example, a household with four members would need their MAGI to remain under $128,600. If it increased above that threshold, they would need to pay back the entire subsidy they received throughout 2026. Make sure you are working with a tax professional to determine an accurate MAGI for 2026 and account for any potential extra income. Will you be receiving a bonus? Investment income? Severance package? Other?

Also, keep in mind that the above numbers may not be finalized. Connect for Health offers a cost tool which you can utilize to determine your 400% FPL. (More on this in Next Steps.)

MAGI for 2026

We will need an accurate MAGI to list on your application for 2026. We need this whether or not you are making changes to your plan. Please work with your tax professional during this time to determine your MAGI for 2026; we are unable to advise on this in any way. Also, keep in mind that Connect for Health is frequently requiring income verifications. Many individuals lost their 2025 coverage or their tax subsidy because they did not provide income verification documents to Connect for Health within the required timeframe. Please be prepared to provide this documentation if requested. We hope you can take the next few weeks to determine your MAGI so you’ll have that information readily available when we connect in November.

Next Steps

We will be sending out another email in the next week or two with a link to the new and improved Connect for Health Colorado Cost Tool. (It is not currently available.) You can use this tool to compare plans and view your qualifications for APTC and CPA. This will be available around the middle of October but you will not be able to view 2026 plans and associated costs until November 1st. This email will also include links to our scheduling tool so you can begin scheduling calls with us. We can discuss and renew/change your plan beginning November 1st. 

There are a lot of changes for 2026 but we are here to assist however we can. We look forward to connecting in November!



The Wiswell Insurance Team