U.S. Department of Health proposes changes to Obamacare subsidy verification

The U.S. Department of Health and Human Services (HHS) has announced a proposal, identified as CMS-9873-P, to alter how subsidy applicants' data is verified in the Obamacare insurance markets starting with the 2028 coverage year.

Under the proposal, insurance markets must confirm income, citizenship, residency, and eligibility for other coverage before granting financial assistance. This measure aims to reduce improper enrollments and prevent beneficiaries from having to repay tax credits during tax filings. Currently, applicants enter an “inconsistency period” if data cannot be verified electronically, receiving subsidies while providing documentation. The new rules would require annual data confirmation for automatic re-enrollment with subsidies; otherwise, applicants will be re-enrolled without financial aid.

Estimates suggest the change could result in approximately 332,500 fewer annual enrollments across all markets, including 237,500 on the federal platform and 95,000 in state markets. A new verification period is set to begin on August 1 each year, starting in 2027.

Separately, the 2027 enrollment period for health insurance via HealthCare.gov begins on November 1, 2026. In states like Texas, the deadline to select a plan for coverage starting January 1 is December 15, 2026. The ordinary enrollment period concludes on January 15, 2027.