💸 Paying Too Much in Taxes for Your Marketplace Plan? Here's What You Need to Know

If you're a healthy adult buying your own health insurance, you may be paying more than you should—especially if you’re using a Marketplace (ACA/Obamacare) plan with premium tax credits.

Each year, many people are caught off guard during tax season when they realize:

They owe money back—sometimes hundreds or even thousands of dollars—because they received too much in subsidies.

Sound familiar? Let’s talk about why this happens—and how you can avoid it with a smarter coverage strategy.

💬 “I was shocked when I had to repay over $1,000 during tax season because I underestimated my income. Now I use a private market plan—no more surprises, and I’m saving money every month.” — Marco, 31, Denver

🎯 What is Marketplace Reconciliation?

When you sign up for a health plan on the Marketplace, your premium tax credit is based on your estimated income for the year.

But here’s the catch:If you earn more than you predicted—due to a raise, side gig, or freelance work—you may have to repay part (or all) of that credit when you file your taxes. That’s called Marketplace plan reconciliation, and it can lead to some nasty tax surprises.

👉 Healthy, higher-earning individuals often don’t qualify for full subsidies, and end up either:

• Overpaying on monthly premiums, or

• Owing money at tax time when it’s too late to adjust.

What Are My Options???

🧠 There’s a Smarter Way: The Private Market

If you’re healthy and don’t qualify for Medicaid or full ACA subsidies, you have another option: health-based private market plans.

These plans are not tied to income, so there are:

• No subsidy cliffs

• No year-end reconciliations

• No surprise IRS bills

Private market plans often cost less than traditional ACA plans for healthy individuals and still provide solid coverage, including preventive care and major medical protection.

✅ Why Consider a Private Market Option?

If you:

• Are healthy and active

• Want to avoid tax-time headaches

• Live in a mandated state (where having insurance is required)

• Need flexible, affordable coverage outside of open enrollment

...then private plans might be the better fit.

At Nationwide Health Advocates, we help people like you explore alternative health coverage that fits your lifestyle—and your wallet.

💡 Get real discounts without annual surprises—try a private market option today.

We’ll help you compare plans, understand your options, and connect you with a licensed agent to make the switch easy.

👉 Learn more and speak with an advocate