Protecting Health Care and Lowering Costs Act of 2025
Protecting Health Care and Lowering Costs Act of 2025
Plain Language Summary
# Summary of HR 4849: Protecting Health Care and Lowering Costs Act of 2025 **What the bill would do:** This bill aims to make permanent and expand tax credits that help people afford health insurance purchased through government exchanges (marketplaces). Currently, these subsidies are set to expire after 2025. The bill would remove the income cap that limits who can receive these credits, allowing higher-income households to qualify.
It would also repeal certain health-related provisions from a previous law (the "One Big Beautiful Bill Act"). **Who it affects and key provisions:** The bill primarily affects people who buy their own health insurance through the healthcare marketplace rather than getting it through an employer. It would expand eligibility beyond the current 400% federal poverty line income limit and increase the amount of premium assistance available to eligible people. By repealing certain Medicaid and Medicare provisions from prior legislation, it would also affect beneficiaries of those programs, though the specific details are incomplete in the available summary. **Current status:** The bill was introduced by Representative Adam Gray (D-California) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives.
CRS Official Summary
Protecting Health Care and Lowering Costs Act 2025This bill makes permanent temporary provisions that generally expand eligibility for and increase the amount of the premium tax credit. This bill also repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the One Big Beautiful Bill Act (OBBBA).Currently, eligible taxpayers may claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To qualify, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the maximum income limit is eliminated, which generally expands eligibility for the premium tax credit.Further, under current law, the amount of the premium tax credit is partially based on the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the applicable percentages are lowered and the adjustment of the applicable percentages for inflation is eliminated, which generally increases the amount of the premium tax credit.The bill permanently eliminates the 400% maximum income limit, lowers the applicable percentages, and eliminates the inflation adjustment for the applicable percentages.Finally, the bill repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the OBBBA, includingcertain Medicare and Medicare eligibility and verification requirements,the reduced window for retroactive Medicaid coverage, andpremium tax credit verification requirements.
Latest Action
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.