Uncovering the Affordable Care Act: Premium Impact of Removing a Family Member


The Affordable Care Act (ACA) offers health insurance coverage to individuals and families who qualify. When it comes to family plans, adding or removing a family member can affect the overall premium costs. In this blog, we will explore how removing a family member from an ACA plan can impact the remaining family members’ premium costs and other related considerations.

ACA Premium Calculations: Understanding the Basics

ACA premiums are calculated based on several factors, including:

Tobacco use
Household income (Modified Adjusted Gross Income or MAGI)

MAGI plays a significant role in determining eligibility for premium tax credits, which can substantially reduce premium costs.

Impact of Removing a Family Member on Premiums

When a family member is removed from an ACA plan, it can have the following impacts on the premium costs:

Increase in Remaining Premiums: In most cases, the premiums for the remaining family members will increase because the household income used to calculate MAGI decreases. This decrease in income can lead to a reduction in premium tax credits, resulting in higher premiums.
Loss of Premium Tax Credits: If the family member being removed was the primary earner or had a high income, their removal from the plan could result in the loss of premium tax credits for the entire family. This can lead to a significant increase in premiums.
Exception: If the family member being removed obtains employer-sponsored health insurance that meets certain standards, it may not impact the remaining family’s premium costs.

Additional Considerations

Dependent Age: The age of the family member being removed can also affect the premium impact. Removing an adult child, for example, can have a greater impact than removing a young child.
Special Circumstances: In some cases, special circumstances, such as divorce or death, may allow for adjustments to the premium calculations.
Seeking Professional Assistance: It is recommended to seek guidance from a licensed insurance agent or visit healthcare.gov to accurately calculate the potential impact of removing a family member from an ACA plan.


Understanding how removing a family member from an ACA plan can affect premiums is crucial for informed decision-making. By considering the factors discussed in this blog, you can make the best choices for your family’s health insurance coverage and budget. Remember, it is always advisable to consult with a healthcare insurance professional or visit the official healthcare.gov website for personalized guidance and accurate premium estimates.

Question? or Need a Free Quote?
Contact Us

Reach out to us for free expert insurance advice and solutions. We will help you solve ACA (Obamacare) related questions and problems. Will contact you within 24 hours of receiving your message.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *