For affordable health insurance, Tennessee residents mostly use a Marketplace plan on HealthCare.gov with a premium tax credit, which starts at 100% of the poverty level because Tennessee did not expand Medicaid. Open Enrollment runs Nov 1, 2026 – Jan 15, 2027; enroll by Dec 15 for Jan 1 coverage. Children may qualify for CoverKids.
Updated for the 2027 plan year (October 2026). Reviewed by a licensed agent.
What “affordable” means for Tennessee shoppers in 2027
For most people who buy their own coverage, affordable health insurance Tennessee families can count on comes from the federal premium tax credit. The credit limits what you pay for the benchmark Silver plan to a fixed share of your income, so your cost is tied to what you earn, not just to the sticker price.
That matters more this year. The enhanced credits that ran from 2021 to 2025 expired on December 31, 2025, and in 2026 KFF found subsidized enrollees’ net premium payments more than doubled on average. For 2027, insurers nationally proposed a median increase of about 15% (KFF), and Tennessee’s approved individual-market filings averaged about 15.6%, per ACA Signups’ summary of state filings. Shopping again, rather than auto-renewing, is the single best habit you can build.
The rest of this guide shows where your income lands, what share you pay, and practical ways to keep costs down. For the full state picture, see our Tennessee health insurance guide.
2026 poverty-level income table for Tennessee households
Marketplace savings for 2027 coverage are measured against the 2026 HHS poverty guidelines. In Tennessee, the credit generally starts at 100% of the poverty level and stops above 400%, the so-called subsidy cliff.
| Household size | 100% FPL (credit starts) | 400% FPL (credit ends above this) |
|---|---|---|
| 1 | $15,960 | $63,840 |
| 2 | $21,640 | $86,560 |
| 3 | $27,320 | $109,280 |
| 4 | $33,000 | $132,000 |
Add $5,680 at the 100% line for each additional person. Income means your household’s modified adjusted gross income for 2027, the year the coverage applies, not last year’s paycheck. The HHS guidelines are published by ASPE.
Your share of income for benchmark Silver in 2027
The IRS sets the “applicable percentage” each year. For 2027 coverage, it ranges from 2.15% of income at the low end to 10.22% for households between 300% and 400% of the poverty level.
| Income (% of poverty level) | Expected contribution, 2027 |
|---|---|
| Under 133% | 2.15% |
| 133% – 150% | 3.23% – 4.30% |
| 150% – 200% | 4.30% – 6.78% |
| 200% – 250% | 6.78% – 8.66% |
| 250% – 300% | 8.66% – 10.22% |
| 300% – 400% | 10.22% |
| Over 400% | No subsidy |
The credit equals the gap between the benchmark Silver premium in your area and that expected contribution. You can use it on any metal tier. The IRS premium tax credit basics and our 2027 subsidies guide explain how it is reconciled on your tax return.
Honesty.AI estimates your 2027 credit and compares every plan for your Tennessee ZIP code.
If you earn under 100% of the poverty level
Tennessee has not expanded Medicaid, so an adult earning below the poverty line generally gets no Marketplace credit and may not qualify for TennCare either. This is the coverage gap, and it is the hardest spot in the state’s system.
Check TennCare first. Pregnant women, parents or caretakers of a minor child, people receiving SSI and a few other groups can qualify, and you apply at TennCare Connect. If you do not fit, look at a community health center with a sliding fee scale through HRSA’s Find a Health Center, and ask any hospital you use about its financial assistance policy.
If your income is close to 100%, estimate it carefully. A small raise, extra hours or a side job can move you above the line and into subsidy range.
Seven ways to find affordable health insurance Tennessee households can keep
Beyond the credit itself, how you shop changes what you pay over a year. These are the moves that matter most for Tennessee households in 2027.
- Estimate 2027 income honestly. The credit is based on projected income. Report changes during the year so you avoid a surprise at tax time.
- Look at Silver if you earn under 250% FPL. Only Silver plans carry cost-sharing reductions, which lower deductibles and copays.
- Compare total yearly cost, not just the premium. Add premiums to the deductible you might realistically hit. The 2027 out-of-pocket maximum is $12,000 for one person and $24,000 for a family.
- Consider Bronze if you rarely use care. Some Bronze plans are HSA-eligible, letting you save pre-tax for medical bills.
- Under 30 or facing hardship? Catastrophic plans are an option, though the premium tax credit cannot be used on them.
- Check your job offer. If employer coverage for you alone costs less than 10.22% of household income, it counts as affordable and blocks your own credit.
- Re-shop every fall. Cigna is leaving the Tennessee Marketplace after 2026, and other carriers’ networks and prices change too.
Our step-by-step guide on how to choose a health plan covers networks and drug lists, and our national affordable health insurance guide covers alternatives and ancillary coverage such as dental and vision.
Read the fine print on alternatives. Some non-ACA plans can exclude pre-existing conditions or cap benefits. They may fit a gap, but compare them against a subsidized Marketplace plan before you buy.
Affordable health insurance Tennessee options by life situation
The cheapest path depends on why you are buying your own plan. These are the situations we see most often from Tennessee shoppers, and the first thing each one should check.
Self-employed and gig workers
If you drive, deliver, freelance or run a small business, your income can swing month to month. Base your estimate on a realistic full-year number, keep records, and update your application when income changes. Self-employed people may also be able to deduct premiums they pay themselves on their federal return; ask a tax professional how that interacts with the credit.
Losing job-based coverage
Leaving a job opens a 60-day Special Enrollment Period. Compare COBRA against a subsidized Marketplace plan before you decide; COBRA keeps your network but you usually pay the full cost yourself.
Early retirees not yet on Medicare
Retiring before 65 often lowers your countable income, which can raise your credit. Watch the 400% line closely, because one large retirement-account withdrawal can push a household over the cliff for the whole year.
Mixed-status families
From January 1, 2027, Marketplace savings for immigrants are limited to green card holders, Cuban and Haitian entrants, and Compact of Free Association migrants, per HealthCare.gov. Citizen children can still get CoverKids, TennCare or savings on their own.
Covering kids and pregnancy for less in Tennessee
Children in Tennessee often qualify for more help than their parents. If the kids are not eligible for TennCare, CoverKids covers children under 19 in households at or below 250% of the poverty level.
CoverKids also covers pregnant women up to the same income level, with no immigration documents required for pregnancy coverage, according to the CoverKids eligibility page. A family can mix coverage: parents on a Marketplace plan, children on CoverKids or TennCare. One HealthCare.gov application checks everyone at once.
Tennessee cities: local help with affordable health insurance
The rules above apply statewide, but local hospitals, clinics and in-person help differ. Our city guides cover the details for the two Tennessee cities where people search most for coverage.
Memphis
Shelby County is one of ten Tennessee counties with in-person Navigator help through Family & Children’s Service. Christ Community Health Services offers a sliding fee discount program, and Church Health runs the MEMPHIS Plan for uninsured workers. Read the Memphis health insurance guide.
Knoxville
Knox County residents get virtual Navigator help, and Cherokee Health Systems runs federally funded health centers across the city. Students, early retirees and tourism workers each have specific options. Read the Knoxville health insurance guide.
Find affordable 2027 coverage in Tennessee
Honesty.AI is the world’s first patented, licensed AI insurance agent. It compares ACA, alternative and ancillary plans, applies your subsidy and works for you, 24/7 by chat, voice or text. Honesty Is Your Best Policy®.
Frequently asked questions
Who qualifies for a subsidy in Tennessee for 2027?
Most people who buy their own coverage and earn between 100% and 400% of the federal poverty level, about $15,960 to $63,840 for one person, qualify for a premium tax credit if they lack affordable job coverage, Medicare or TennCare.
Why can’t I get a subsidy if I earn under the poverty level in Tennessee?
Tennessee has not expanded Medicaid, and the premium tax credit generally starts at 100% of the poverty level. Adults below that line who do not fit a TennCare group can fall into the coverage gap. Community health centers with sliding fees are the main option.
Is there a 400% subsidy cliff for 2027?
Yes. The enhanced credits expired after 2025, so households earning more than 400% of the poverty level, $132,000 for a family of four, get no premium tax credit for 2027 coverage.
Can my children get CoverKids if I buy a Marketplace plan?
Yes. Children under 19 who are not eligible for TennCare can qualify for CoverKids if household income is at or below 250% of the federal poverty level, even when parents enroll in a Marketplace plan.
What is the cheapest metal tier to pick?
The lowest premium is not always the lowest total cost. Bronze usually has the lowest premium and highest deductible. If your income is under 250% of the poverty level, a Silver plan with cost-sharing reductions often lowers your total yearly cost.
Keep learning: see the full Tennessee health insurance guide, the local guides for Memphis and Knoxville, our 2027 subsidy guide, and how to choose a health plan.
