Employer Health Insurance Too Expensive? Your 2027 Marketplace Options
If your employer’s health insurance feels expensive, you may wonder whether you can buy an ACA Marketplace plan instead.
You can explore Marketplace coverage, but an offer of employer insurance can affect whether you qualify for financial assistance—even if you decline that offer.
The answer depends on the employer plan’s cost, whether it meets minimum-value requirements and which household members need coverage.
Here’s what to check before making your 2027 enrollment decision.
Can You Get Marketplace Insurance If Your Employer Offers Coverage?
An employer’s offer does not automatically prevent you from purchasing Marketplace insurance. However, an affordable offer that meets minimum value generally prevents the person receiving that offer from qualifying for premium tax credits.
That distinction matters: being able to buy a plan is different from qualifying for help paying its premium.
If you enroll in employer-sponsored coverage, you generally cannot receive a Marketplace premium tax credit for yourself for those same months.
What Counts as Affordable Employer Coverage in 2027?
For employer plan years beginning in 2027, the affordability percentage is 10.22% of household income.
For the employee, the assessment generally uses the employee’s required contribution toward the lowest-cost available self-only plan that meets minimum value.
It does not necessarily use the price of the plan you prefer or the amount needed to cover your entire family.
Example: Employee-Only Coverage
Assume:
Expected annual household income: $60,000
Employee contribution for the lowest-cost qualifying self-only plan: $250 per month
The annual contribution is: $250 × 12 = $3,000
That equals 5% of household income. Because this is below 10.22%, the offer would generally meet the affordability test for the employee, assuming the other applicable requirements are satisfied.
This is an illustration, not an eligibility determination. Employer plans with noncalendar plan years may require additional review.
Your Family May Have Different Options
Family members have a separate affordability assessment.
For offered family coverage, the assessment generally considers the employee’s required contribution to cover the employee and the family members offered coverage that meets minimum value.
Example: Affordable for the Employee, Expensive for the Family
Using the same $60,000 household income, suppose the required contribution for qualifying family coverage is $900 per month.
$900 × 12 = $10,800
That equals 18% of household income.
In this example, employee-only coverage may be considered affordable while family coverage is not. The employee could remain on the job-based plan, while eligible family members explore Marketplace coverage and potential savings.
Other eligibility requirements still apply. An unaffordable offer does not guarantee a particular subsidy or premium.
What Does “Minimum Value” Mean?
Minimum value is a standard for employer-sponsored health coverage.
A plan generally meets this standard when it:
Is designed to pay at least 60% of total medical-service costs for a standard population.
Includes substantial coverage for physician and inpatient hospital services.
This does not mean the plan pays 60% of every individual bill.
Ask your employer’s benefits team whether the offered plan meets minimum value. You can also request assistance completing the HealthCare.gov Employer Coverage Tool.
What Information Should You Gather?
Before comparing employer and Marketplace options, collect:
Your expected 2027 household income
The lowest-cost self-only premium you would pay
The required contribution for applicable family coverage
Confirmation of whether the plan meets minimum value
Who is eligible for the employer plan
Coverage start dates and enrollment deadlines
Details of any employer health reimbursement arrangement
Use the amount you must contribute, rather than the full premium paid jointly by you and your employer.
If premiums are deducted from each paycheck, confirm the number of deductions per year before converting them to an annual amount.
Does Declining Employer Insurance Make You Eligible for Savings?
No. Declining coverage does not remove the effect of an affordable, minimum-value offer.
Report available employer coverage accurately on your Marketplace application, including offers through a spouse’s job.
If your employer provides an individual coverage health reimbursement arrangement or another reimbursement benefit, separate rules may apply. Include that information when checking your options.
Compare Benefits as Well as Premiums
Even when Marketplace savings may be available, compare the complete coverage.
Feature | What to review |
Monthly payment | Your employer contribution versus your Marketplace premium after any applicable credit |
Deductible | What you pay before the plan shares certain costs |
Provider network | Whether your doctors and hospitals participate |
Prescriptions | Coverage, pharmacy rules and medication costs |
Out-of-pocket maximum | Your financial exposure for covered, in-network care |
A cheaper monthly payment can come with higher costs when you receive care.
Read Aura’s 2027 health insurance cost guide for more comparison tips.
When Can You Enroll?
Marketplace Open Enrollment for 2027 coverage begins November 1, 2026.
For states using HealthCare.gov:
Enroll by December 15, 2026, for January 1, 2027 coverage.
Enroll December 16 through January 15 for coverage generally beginning February 1, 2027.
Pay any required first premium by the insurer’s deadline.
Outside Open Enrollment, you generally need to qualify for a Special Enrollment Period. Voluntarily dropping job-based coverage does not, by itself, create that opportunity.
Employer enrollment deadlines may differ. Confirm both schedules before changing coverage. Georgia residents should also check Georgia Access’s applicable instructions and dates.
What If Your Employer Coverage Changes During the Year?
Report new offers of employer coverage and other relevant changes to the Marketplace promptly.
A new qualifying offer may affect your savings even if you do not accept it. If you lose job-based coverage, you may qualify for a Special Enrollment Period.
Confirm eligibility, effective dates and payment requirements before ending existing coverage.
Frequently Asked Questions
Can my spouse use Marketplace coverage while I keep my work insurance?
Potentially. Family members may have different eligibility results based on the coverage offered to them and the family affordability assessment.
Does a high deductible automatically make employer coverage unaffordable?
No. The affordability assessment focuses on the required premium contribution. Minimum value is a separate requirement.
Is affordability based only on my salary?
Generally, it is based on household income under the applicable rules, rather than your salary alone.
Can I compare Marketplace plans without immediately canceling my employer coverage?
Yes. Reviewing options or checking eligibility does not automatically cancel your existing plan. Confirm your selection and effective date before making changes.
Explore Your 2027 Options With Aura Insure
Gather your employer-plan information, update your household income estimate and compare the options available to you.
Aura Insure helps eligible customers in Texas, Florida, Ohio, Michigan, South Carolina and Georgia complete enrollment 100% online, without a mandatory sales call.
*Last reviewed: October 12, 2026. This article provides general educational information, not individualized tax advice. Marketplace
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