Tennessee Cliff Calculator — 2026 ACA Subsidy

By Severance Calculator Editorial · Updated

Tennessee Marketplace: HealthCare.gov

Tennessee uses a federally-facilitated marketplace (FFM) called HealthCare.gov. Tennessee residents enroll at HealthCare.gov.

Medicaid in Tennessee: TennCare

Tennessee has not expanded Medicaid under the ACA. Adults above the pre-ACA income limit and below 100% FPL may fall into a coverage gap — they earn too little to qualify for marketplace subsidies (which start at 100% FPL) but do not qualify for Medicaid.

2026 SLCSP Benchmark Premiums (Tennessee)

Statewide average monthly second-lowest-cost Silver plan (SLCSP) premiums by age. Actual premiums vary by rating area.

Age2130405060
Monthly SLCSP$450$510$575$803$1,220

2026 ACA Cliff Thresholds by Household Size (Tennessee)

MAGI above these amounts zeros out the federal Premium Tax Credit. FPL region: contiguous48.

Household size12345
400% FPL cliff$62,600$84,600$106,600$128,600$150,600

Key Facts: Tennessee ACA

Tennessee has not expanded Medicaid under the ACA, despite repeated legislative attempts. The most prominent was 'Insure Tennessee,' a proposal developed by Governor Bill Haslam that would have used federal Medicaid expansion funds through a private-option 1115 waiver. The Tennessee General Assembly rejected Insure Tennessee in special sessions in both 2015 and 2019, leaving hundreds of thousands of low-income adults without a Medicaid pathway.

Tennessee's Medicaid program, TennCare, has an entirely separate distinction: it operates under the TennCare III block grant 1115 waiver, approved by the Trump administration in January 2021 — the first Medicaid block grant ever approved in the United States. The waiver converts a portion of federal Medicaid funding into a fixed block grant rather than open-ended federal matching, giving Tennessee more flexibility but capping federal financial exposure. A modified amendment was implemented in 2022 under the Biden administration.

Tennessee uses HealthCare.gov (FFM) for marketplace enrollment and has no state-funded premium subsidy backfill for 2026. Adults earning 100-138% FPL face the same coverage gap as other non-expansion states.

Calculate your Tennessee ACA cliff

Inputs default to Tennessee; adjust to your household specifics. Cliff = $62,600 (HH=1) / $128,600 (HH=4).

Your situation

Member ages
self

Coverage

Income

You're under the cliff

100%138%200%300%400%

You are at 319% of the federal poverty level.

Annual PTC
$1,920
$160 / month
MAGI headroom before cliff
$12,600
until you hit 400% FPL

PTC dollar values use a state-level SLCSP estimate; verify your exact second-lowest-cost Silver plan on healthcare.gov for your zip.

Primary Sources

  1. TennCare — Tennessee's Medicaid Program
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FAQ — Tennessee ACA Cliff

What is the 2026 ACA subsidy cliff in Tennessee?
For a household of 1, MAGI above $62,600 (400% of the 2025 FPL contiguous-48 base) zeros out the federal Premium Tax Credit under IRS Rev. Proc. 2025-25. Household of 4: $128,600. Tennessee has no state subsidy backfill, so crossing this threshold eliminates all premium assistance.
What is the TennCare III block grant waiver?
TennCare III is Tennessee's Medicaid 1115 waiver, approved in January 2021 — the first Medicaid block grant ever approved in the US. Under the block grant structure, Tennessee receives a fixed aggregate cap of federal Medicaid funds rather than open-ended federal matching. This gives Tennessee flexibility to allocate funds but caps federal financial exposure. A modified amendment was implemented in 2022.
Why hasn't Tennessee expanded Medicaid?
Tennessee attempted expansion through 'Insure Tennessee,' a private-option 1115 waiver proposal developed by Governor Bill Haslam. The Tennessee General Assembly rejected the proposal in special sessions in 2015 and again in 2019. As of 2026, Tennessee remains a non-expansion state, leaving an estimated 100,000+ adults in the coverage gap.
How do I enroll in marketplace coverage in Tennessee?
Tennessee uses HealthCare.gov (the federal FFM marketplace). Open enrollment runs November 1 through January 15. Tennessee has no state-run marketplace. You can apply for TennCare at tenncare.tn.gov year-round if you meet categorical eligibility (children, pregnant women, disabled, etc.).
Does Tennessee have a state subsidy on top of the federal PTC?
No. Tennessee has no state-funded premium subsidy backfill for 2026. Residents rely entirely on federal APTC, which ends above 400% FPL. The American Rescue Plan enhanced PTCs expired December 31, 2025.
How is SLCSP calculated for Tennessee?
The 2026 statewide SLCSP age-band averages for Tennessee are: Age 21: $450/mo, Age 30: $510/mo, Age 40: $575/mo, Age 50: $803/mo, Age 60: $1,220/mo. These are statewide averages; your specific county may vary ±20–30%. The federal cliff distance (income vs. 400% FPL) is exact regardless of SLCSP precision.
Can I reduce my MAGI to stay below the 2026 cliff in Tennessee?
Yes — common strategies include maximizing HSA contributions, deductible IRA or SEP-IRA/Solo 401(k) contributions if self-employed, harvesting capital losses, and deferring Roth conversions. Tennessee has no state income tax on wages, which simplifies some planning. Because Tennessee has no state subsidy above 400% FPL, staying below the federal cliff has full dollar impact.

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