Health Care Affordability Act of 2025
Health Care Affordability Act of 2025
Plain Language Summary
# Health Care Affordability Act of 2025 - Summary **What the Bill Would Do:** This bill would make permanent certain temporary changes to health insurance subsidies that were enacted during the pandemic and inflation relief efforts. Specifically, it would eliminate income limits for people seeking tax credits to help pay for health insurance premiums purchased through the government marketplaces. Currently, these subsidies expire after 2025, and there's a cap limiting who can receive them (households making more than 400% of the poverty level).
The bill would remove that income cap permanently, allowing higher-income individuals to qualify for federal help paying insurance premiums. **Who It Affects:** The bill primarily affects people who buy their own health insurance through the healthcare exchanges rather than getting coverage through employers. It would potentially expand assistance to middle- and upper-income households that currently don't qualify. This would also affect federal spending, as more people receiving subsidies would increase government costs. **Current Status:** The bill was introduced in the 119th Congress by Senator Jeanne Shaheen (D-NH) and is currently in committee, meaning it's under review and hasn't yet been debated or voted on by the full Senate.
CRS Official Summary
Health Care Affordability Act of 2025This bill makes permanent temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit.Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, 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 ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit.Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit.The bill makes permanent the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.
Latest Action
Read twice and referred to the Committee on Finance.