Why Is My Health Insurance Going Up in Price Because I Didn't File My Taxes?

Utah Avenue Insurance
Aug 21
2 min read

If you’ve recently opened your health insurance bill and noticed the price went way up, you’re not alone. Many Utah families are seeing sudden increases in their premiums—and the reason may surprise you. The Marketplace now matches data directly with the IRS. If it shows you didn’t file your most recent tax return or reconcile your subsidies, your health insurance subsidies (also called premium tax credits) could be cut off.

Why Filing Taxes Matters

When you get subsidies to lower the cost of your health insurance, the IRS requires you to file taxes each year and “reconcile” those subsidies. That means you confirm how much financial help you received and compare it with your actual income. If you skip this step, the Marketplace assumes you don’t qualify and removes your tax credits.

What Happens If You Didn’t File?

Your subsidies stop immediately. Without subsidies, you’re responsible for the full premium amount—which can be hundreds of dollars more per month.
You may have to pay for one month out of pocket. If the issue isn’t fixed quickly, you could be stuck paying the higher premium until the Marketplace updates your account.
You can still get your subsidies back. Once you file your taxes and update your Marketplace account, your subsidies can be restored.

How to Fix It

File your taxes right away. Once the IRS confirms your filing, the Marketplace can reinstate your subsidies.
File an appeal. If you believe the Marketplace made a mistake, you can appeal. Appeals usually take 4–6 weeks.
Reconcile at tax time. If you don’t fix this during the year, you’ll reconcile when you file your 2025 taxes and may get a refund then.
Call a local agent. At Utah Avenue Insurance, our local health insurance agents can help you fix your application, go over your options, and even file the appeal for free if needed.