What Happens If Tax Credits Go Away? Here’s the Honest Breakdown (Plus Affordable Backup Options)

There’s a very specific kind of tension in the air right now. You can feel it at work, at the grocery store, scrolling on Facebook — everyone’s wondering the same thing:

“What happens if Congress doesn’t renew the ACA tax credits?”

After the recent changes to food stamp benefits, the idea of losing health insurance subsidies too? Yeah. People are nervous. And pretending otherwise doesn’t help anyone.

I’m not here to debate politics — but I am here to acknowledge what’s happening and give you real, practical guidance for your family. Because while we wait for a final decision, millions of Americans (especially in rural areas like ours) are stuck in uncertainty.

Let’s talk about what’s actually going on, what it could mean for your premiums, and — most importantly — what your backup options are if things shift.

So… What’s Actually on the Table?

Here’s the simple, no-jargon version:

Congress is deciding whether to continue funding the federal subsidies (tax credits) that dramatically reduce the cost of ACA/Marketplace plans.

If they don’t renew funding?

• Premiums will rise — significantly

• Low and middle-income families will be hit the hardest

• Rural areas (like Routt and Moffat counties) will feel it even more

• Some families could see the cost of their plan double or triple

That’s not fear-mongering. That’s what the math looks like.

The worst part isn’t even the potential price increase — it’s the uncertainty. People just want straight answers. So here they are.

If Tax Credits Disappear, What Are Your Options?

Here’s the part nobody talks about — probably because it’s not great for commissions — but it matters:

There are lower-cost alternatives that can keep you protected if subsidies change.

Are these perfect? No. Are they better than going uninsured? 100% yes.

Let’s break down the ones worth knowing:

1. Catastrophic-Style Plans

(Available for adults under 30 or anyone with a hardship exemption.)

• Low monthly cost

• High deductible

• Meant for major emergencies, not routine care

It’s a safety net — not a full plan — but a safety net is still miles better than nothing.

2. Short-Term Medical Plans

These often get a bad reputation, but when used correctly they’re extremely practical.

They work well for:

• healthy individuals or families

• temporary gaps

• people needing affordable, basic protection

They don’t cover everything — but they do keep you from financial ruin in an emergency.

3. Health Sharing Ministries

These aren’t technically insurance, but many families use them as a budget-friendly alternative.

They offer:

• significantly lower premiums

• predictable costs

• strong coverage for large medical events

Not ideal for everyone, but worth considering depending on your comfort level and health needs.

4. Fixed-Benefit (Indemnity) Plans

These pay you a set amount of money for specific medical events.

Examples:

• break a bone → check

• ER visit → check

• hospital stay → bigger check

They’re best when paired with a higher deductible plan as a financial cushion.

5. Direct Primary Care (DPC) + Minimal Coverage Combo

This is one of the smartest, most affordable “Plan B” setups, especially in rural communities.

DPC gives you:

• unlimited visits

• labs

• urgent care

• direct text access to your doctor

• zero co-pays

Then you pair it with a bare-bones catastrophic plan for big emergencies. It’s affordable, predictable, and surprisingly powerful.

Why I’m Telling You This

Because the industry avoids these conversations. Because I work with real families who are already stretched thin. Because ignoring the elephant in the room helps exactly no one.

And because I believe honest advocacy matters more than sales.

If tax credits stay? Great — ACA plans remain the most affordable, comprehensive option for most people.

If they disappear? You won’t be scrambling. You’ll already know your next move.

Either way, you deserve the full truth and a clear plan.

Want to Talk Through Your Options?

Whether subsidies stay or go, now is the time to get your questions answered and make a game plan while things are still calm.

➡️ Book a quick call with me here. We’ll walk through:

• your best-case scenario

• your fallback options

• and how to keep your family covered no matter what Congress decides

No pressure. No sales pitch. Just straight answers — and real solutions.