Applying for health insurance through the ACA marketplace can look simple, but small errors can cost you thousands. The ACA premium tax credit is meant to lower monthly costs, but only if your application is correct.

This guide will show you the top ACA subsidy application mistakes, how to avoid subsidy denial, and the best marketplace application tips.

Mistake 1: Misreporting Your Income

Income reporting errors are the number one ACA subsidy application mistake. The marketplace uses your household income to calculate your premium tax credit. Report too little, and you may owe money back. Report too much, and you lose savings.

What Counts as Income

• Wages, salaries, and tips
• Self-employment earnings
• Social Security benefits
• Retirement income, such as pensions or withdrawals
• Unemployment benefits

What Does Not Count

• Child support
• Supplemental Security Income (SSI)
• Gifts or small financial help from relatives

Results of Mistakes

• Overpayment of subsidies leads to IRS repayment at tax time
• Underpayment leads to higher monthly premiums

Prime Life Financial Tip: Always review your prior year tax return. Estimate conservatively but include all expected income sources.

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Mistake 2: Skipping Eligibility Checks

Not everyone qualifies for ACA subsidies. Many people skip eligibility reviews and assume they do. This creates ACA eligibility mistakes and wasted time.

Common Errors

• Applying while having affordable employer coverage
• Missing Medicaid eligibility in your state
• Assuming part-time income automatically qualifies

Why it Matters

• Subsidies are denied if you are eligible for affordable job-based coverage
• Medicaid expansion rules vary by state
• Incorrect applications delay coverage

Prime Life Financial Tip: An advisor can quickly check ACA eligibility across all plans and states, saving you from rejection.

Confused About ACA Eligibility? PrimeLife Financial compares all your options and ensures you qualify before you apply. Request an Appointment

Mistake 3: Forgetting Household Size Rules

The ACA marketplace bases subsidies not only on income but also on household size. Miscounting family members is a common ACA application mistake.

Who Counts as Part of Your Household

• You, your spouse, and dependents you claim on taxes
• Children under 26, even if they live away from school
• Other relatives, if you claim them as dependents

Mistakes To Avoid

• Not including all dependents
• Double-counting kids between divorced parents
• Forgetting adult children still on taxes

Results of Mistakes

• Subsidy too low means a higher monthly bill
• Subsidy too high means repayment at tax filing

PrimeLife Financial Tip: Match your ACA application to your tax household. If unsure, ask your tax preparer or advisor.

Don’t Risk Subsidy Errors Because of Household Size Mistakes. PrimeLife Financial ensures your application matches your tax records. Contact Us Now

Mistake 4: Missing Deadlines and Updates

ACA subsidies are not one-time approvals. Life changes mean you must update your application. Missing deadlines is one of the most costly ACA subsidy application mistakes.

Examples of Updates You Must Report

• Change in income
• Marriage or divorce
• New baby or adoption
• Job loss or new job with benefits

Why It Matters

• Missing updates leads to subsidy errors and IRS repayment
• Forgetting deadlines may leave you without coverage for months
  

PrimeLife Financial Tip: Use reminders and advisors to stay compliant year-round.

Stay On Track With Deadlines and Life Updates. PrimeLife Financial manages your ACA application so you don’t miss coverage. Stay Covered

Mistake 5: Choosing the Wrong Plan

Even with subsidies, many people pick the wrong marketplace plan. This ACA subsidy mistake leads to higher costs and weaker coverage.

Typical Errors

• Choosing the cheapest premium but ignoring deductibles
• Overlooking prescription drug coverage
• Skipping network checks for your doctors
• Not considering dental or vision add-ons

Results of Mistakes

• High out-of-pocket bills
• Losing access to providers
• Paying more overall than expected

Prime Life Financial Tip: Balance premium, deductible, and network to get real savings.

Don’t Settle for the Wrong Plan. PrimeLife Financial helps you compare ACA options and avoid costly surprises. Find Your Plan

How Prime Life Financial Helps You Apply

The ACA marketplace has rules that change every year. Without help, it is easy to make these five mistakes.

Why Choose Prime Life Financial

• Independent advisors compare multiple carriers
• Experience fixing subsidy denial cases
• Help with ACA premium tax credit errors
• Support year-round with updates and renewals

Ready to Avoid Aca Application Mistakes? Let PrimeLife Financial simplify the process. Start with an Advisor

Securing Your ACA Subsidy the Right Way

Applying for ACA subsidies can feel overwhelming, but avoiding these five common mistakes can save you from costly errors and lost coverage. The subsidy system is designed to make health insurance affordable, but only if your application is accurate and complete. 

Taking time to review details or working with a trusted advisor ensures you qualify for the right savings, keep your coverage active, and avoid IRS repayment surprises. In short, the key to maximizing your ACA benefits is accuracy, timeliness, and choosing the right plan for your needs.

FAQs

What are some of the most common objections to the ACA?
Many object to ACA costs, limited provider networks, and the complexity of applications. With guidance, most people find affordable plans that fit.

What counts as income for ACA subsidies?
Wages, self-employment, social security benefits, and retirement income count. Child support and SSI do not.

How to maximize the ACA subsidy?
Report income accurately, check eligibility, and choose the right plan type. An advisor can help you secure the largest legal subsidy.

What are the two key issues that the ACA tried to accomplish?
The ACA expanded access to affordable health coverage and banned discrimination for pre-existing conditions.