Fact check: Is the $6,400 subsidy real or a scam?

In recent years, ads on social media platforms have been promising viewers a $6,400 subsidy, often targeting consumers who earn less than $50,000. These ads, found on platforms such as TikTok,¹ YouTube,² and Facebook,³ have been flagged by some publications as misleading.³ So what’s the truth? Is the $6,400 subsidy a scam?

What scammers are saying now

There are plenty of legitimate ads for health insurance, including ads for Marketplace coverage with premium subsidies. Here are some signs that ads might be scams:

• You’ll get free money. If an ad is making it seem like you’re just going to get free money to use for gas, groceries or rent, that’s an indication that the ad is misleading or a scam.⁶
• You’ll receive a specific amount. An ad that promises a specific dollar amount is also misleading, as real health insurance subsidy amounts depend on an applicant’s household income, age, and where they live. Although “$6,400 subsidy” is common in these ads, you may also see ads for a $5,200 subsidy⁷ or various other amounts. But again, real health insurance subsidy amounts are specific to each enrollee, and there are no uniform amounts for health insurance premium subsidies.
• A celebrity or politician is helping you. Some of these $6,400 subsidy scam ads are using artificial intelligence (AI) to make it sound like a celebrity or politician is voicing the ad,^{8 7} so that might also be a sign that the ad you’re watching is misleading.
• That you should “just answer a few questions.” In general, it’s a bad idea to provide personal information when you’ve just clicked on an ad or answered a telemarketing phone call.⁹
• “The offer expires today.” Open enrollment does have a deadline (which varies by state), so legitimate health insurance marketing will mention that during open enrollment. And outside of open enrollment, you can only enroll or make a plan change if you qualify for a special enrollment period, which is also time-limited – but those time limits are specific to each person who qualifies for a special enrollment period. If an ad is telling you that the offer expires soon (and it’s not referencing the end of open enrollment), it’s a good sign that it’s a scam.
• “Everyone qualifies.” If an ad says everyone qualifies for subsidies, it’s dishonest at best and could be a scam. Not everyone qualifies for Marketplace subsidies, as eligibility is based on household income relative to the cost of coverage, as well as whether the person has access to employer-sponsored coverage. In 2026, about 87% of Marketplace enrollees qualified for subsidies.¹⁰

The real (Affordable Care Act) Obamacare health insurance premium subsidy

The Affordable Care Act (ACA, or Obamacare) did indeed create a health insurance subsidy in the form of a tax credit for people who buy their own health insurance in the Marketplace (exchange). But unlike most tax credits – which can only be claimed on a person’s tax return,¹¹ – the ACA premium tax credit can be taken in advance, paid directly to your health insurance company on your behalf each month. This is called an advance premium tax credit, or APTC.¹²

Why $6,400?

As of early 2024, almost 21 million people were enrolled in Marketplace health plans nationwide, and 93% of those buyers had APTC paid on their behalf. The average monthly APTC amount was about $535, which works out to a little over $6,400 if the person keeps their Marketplace coverage for the full year.¹³ This is likely why these ads began using $6,400 as the subsidy amount they reference.

For 2025, the average subsidy amount grew to $550/month,¹⁴ and for 2026, it grew to $650/month.¹⁵ But again, the specifics vary tremendously from one person to another. You can use our subsidy calculator to get an idea of how this works. For example, a 55-year-old in Wyoming (82901 zip code) who earns $30,000 will qualify for a monthly subsidy of $1,772 in 2026 – more than  $21,000 if they keep the coverage for the whole year. On the other hand, a 25-year-old in New Hampshire (03103 zip code) who also earns $30,000 will qualify for a monthly subsidy of $151, or just over $1,800 for the whole year.¹⁶

Another ACA subsidy, known as a cost-sharing reduction (CSR), is automatically built into Silver-level Marketplace plans when an eligible enrollee’s income isn’t more than 250% of the federal poverty level. But just like APTC, this isn’t money that’s sent to the enrollee. If you qualify for CSR and select a Silver Marketplace plan, your out-of-pocket costs for your deductible, copays, and coinsurance will be smaller than they would otherwise be.¹⁷ But you won’t receive any money directly.

Some Marketplace health insurers offer rewards programs to encourage their members to do various activities such as taking a certain number of daily steps, creating an online account, or utilizing preventive care benefits like wellness exams and flu shots. Not all insurers offer these programs, and the specifics vary by insurer. Some offer physical prizes, such as a fitness tracker, while others offer cash or gift cards. But these rewards tend to be no more than a few hundred dollars per year in total, and the details of what you have to do to earn them will be clearly spelled out by the plan.

How and when to apply for a legitimate Obamacare health subsidy

If you don’t have access to employer-sponsored health insurance, Medicaid, or Medicare, you likely need to buy your own health insurance. The health insurance Marketplace allows people who buy their own health insurance to compare the options that are available in their area, enroll in coverage, and potentially qualify for income-based subsidies. (Subsidies are not available for plans purchased outside the Marketplace.)

You can start by visiting HealthCare.gov, the Marketplace used in the majority of the states. If your state runs its own Marketplace, HealthCare.gov will direct you there. This ensures that you’re not just picking a website – that may or may not be legitimate – that shows up in an online search.

If you need help enrolling, you can seek help from a trusted health insurance broker or Navigator. You can also apply for subsidies and Marketplace coverage by using an enhanced direct enrollment entity that’s certified by CMS.

But before you provide any information, make sure you trust the website or person assisting you. Your state’s insurance department can be a good resource if you want to confirm that a person or entity is in good standing in the state’s insurance industry.

You can enroll in Marketplace coverage and apply for a health insurance subsidy during the annual open enrollment period (Nov. 1 to Jan. 15 in most states or during a special enrollment period.

Read our guide to open enrollment to learn more.

You will need to provide personal information, including your Social Security Number, birth date, address, and household income (an ACA-specific calculation). And the Marketplace may ask you to provide documentation to verify details such as your immigration status.¹⁸

How you can tell you’re talking with a legitimate enrollment assister

Bottom line?

If someone promises you’ll receive a $6,400 government subsidy (or any other specific amount) to spend on everyday expenses, be skeptical. Legitimate ACA subsidies lower the cost of health insurance, but they don’t involve free cash. If you’re unsure whether an offer is legitimate, start at HealthCare.gov or your state’s official Marketplace rather than responding to an online ad.