This problem is common to all government programs with income limits. In this case, however, there's an obvious fix: Eliminate the 400% ceiling. That would be feasible because the way the subsidies actually work is by applying a sliding scale limiting the amount any household pays for a benchmark silver-tier health plan as a percentage of its income. For low-income families earning up to 150% of the poverty line, the limit is 4.03% — any premium higher than that is covered by the subsidy.

Source: Los Angeles Times February 21, 2018 19:31 UTC