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Reviewed by Tina Price, licensed health insurance advisor, on October 30, 2026.

Off-exchange plans: when they make sense, and when they don't

An off-exchange plan is an individual plan bought outside Connect for Health Colorado. It can never get the premium tax credit, even at tax time.

Last updated October 30, 2026

The short version

  • Off-exchange plans cannot get the premium tax credit, cost-sharing reductions, or Colorado Premium Assistance.
  • For 2027, Connect for Health Colorado may show off-exchange plans to people who do not qualify for financial help.
  • If you may qualify for any financial help, shop through the exchange. You cannot fix this at tax time.

What off-exchange means

An off-exchange plan is sold directly by an insurance company or an agent, not through Connect for Health Colorado (the state's marketplace, or "exchange"). It often covers the same benefits as an exchange plan.

The difference is financial help. The premium tax credit is only available through the exchange. A plan bought off the exchange cannot get it, even if your income would have qualified.

What changes in 2027

Starting in 2027, Connect for Health Colorado says shoppers who do not qualify for financial help may see off-exchange plans alongside exchange plans. Shoppers who do qualify will see only plans eligible for those savings.

Seeing an off-exchange plan there does not make it eligible for a credit.

When it may make sense

Off-exchange can make sense if your income is above the tax credit range and you want a plan or network sold only off the exchange.

Confirm that your income is above the line. The federal credit covers households from 100% to 400% of the federal poverty level. Colorado Premium Assistance applies to households at or below 400%.

When it does not

If your income may fall in the credit range, even in a lower-income year, buy through the exchange. The credit is only available through the exchange.

If your income is hard to predict, think about the downside. If your income drops after you buy off the exchange, you cannot go back and claim the credit for those months.

If you may qualify for cost-sharing reductions, which apply only to silver plans on the exchange, the exchange is the only place to get them.

Questions to ask before buying

Before you enroll in an off-exchange plan, confirm these points.

  • Is this plan an ACA-compliant individual plan, or a different kind of coverage?
  • What is the network, and are my doctors in it?
  • Is my estimated income clearly above the credit range?
  • When does coverage start, and what is the enrollment deadline?

Next step

Not sure your income is above the line? Price plans with your expected income before you buy off the exchange. Our tax credit guide lists the 400% amounts.

Want a person to check your pick? A licensed Grove advisor will, at no cost.

Compare plansCall (970) 840-1130

Common questions

Can I switch to the exchange later in the year?

Generally only during open enrollment or with a qualifying life event. Do not plan on switching mid-year.

Is an off-exchange plan cheaper?

Not as a rule. The difference is that the exchange can lower your cost with financial help, and an off-exchange plan cannot.

Are short-term plans the same as off-exchange plans?

No. Short-term plans are a different kind of product. Ask whether a plan is a full individual ACA plan, and read what it excludes.

Sources

This guide is general information, not tax or legal advice. Connect for Health Colorado decides eligibility and tax credits.

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