Protecting Health Care and Lowering Costs Act
Protecting Health Care and Lowering Costs Act
Plain Language Summary
# Protecting Health Care and Lowering Costs Act – Summary **What the Bill Does:** This bill would make permanent changes to how Americans can afford health insurance through the Affordable Care Act's insurance marketplaces. Specifically, it would expand who qualifies for premium tax credits (financial assistance that reduces monthly insurance costs) and increase the amount of help available. Currently, these expanded benefits are temporary and set to expire after 2025; this bill would keep them in place indefinitely. The bill would also undo certain healthcare-related tax and benefit changes from previous legislation. **Who It Affects:** The bill primarily affects uninsured Americans and those buying individual health insurance plans, particularly middle-income households that struggle with insurance costs.
It would also impact Medicare and Medicaid programs and related tax provisions. By removing the income cap that currently limits who can receive premium assistance, more higher-income individuals could potentially qualify for financial help with insurance costs. **Current Status:** The bill was introduced by Senator Chuck Schumer (D-NY) in the 119th Congress and is currently in committee, meaning it has not yet advanced to a full Senate vote. As of now, it has not become law.
CRS Official Summary
Protecting Health Care and Lowering Costs ActThis 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
Read twice and referred to the Committee on Finance. (text: CR S4908)