Health Care Affordability Act of 2025
Summary
What This Bill Does
The Health Care Affordability Act amends Internal Revenue Code section 36B, which governs Affordable Care Act marketplace premium tax credits. It removes the income rule that cut off eligibility above 400 percent of the poverty line and replaces the applicable-percentage table with enhanced sliding-scale household contribution rates: zero percent up to 150 percent of poverty, zero to 2 percent from 150 to 200 percent, 2 to 4 percent from 200 to 250 percent, 4 to 6 percent from 250 to 300 percent, 6 to 8.5 percent from 300 to 400 percent, and 8.5 percent at 400 percent and higher. The changes apply to taxable years beginning after December 31, 2025, extending the enhanced subsidy design beyond its scheduled expiration.
Who Benefits and How
Marketplace enrollees above 400 percent of poverty benefit because they remain eligible for premium tax credits instead of falling off a subsidy cliff. Low- and moderate-income marketplace households benefit from lower required premium contributions under the enhanced percentage table. Health insurers selling ACA marketplace plans benefit if larger subsidies sustain enrollment and reduce coverage drop-off. State marketplace operators benefit from a more stable enrollment pool and simpler messaging around the 8.5 percent income cap.
Who Bears the Burden and How
Federal taxpayers bear higher premium tax credit costs because more households qualify and contribution percentages stay lower. Treasury and IRS administrators must continue applying the enhanced section 36B table after 2025. Budget writers must account for the cost of extending enhanced ACA subsidies. Employers near the affordability boundary may see continued employee reliance on marketplace coverage.
Key Provisions
- Expands section 36B premium tax credit eligibility by removing the 400 percent of poverty income cap.
- Establishes enhanced sliding-scale household premium contribution percentages from zero percent to 8.5 percent.
- Repeals related provisions that limited or coordinated eligibility under the old subsidy structure.
- Extends the enhanced subsidy design to taxable years beginning after December 31, 2025.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Extends the Affordable Care Act premium tax credit expansion by removing the 400 percent poverty cap and keeping enhanced sliding-scale contribution percentages through taxable years after 2025.
Key Policy Areas
Health Care, Tax, Insurance
Primary Purpose
Extends the Affordable Care Act premium tax credit expansion by removing the 400 percent poverty cap and keeping enhanced sliding-scale contribution percentages through taxable years after 2025.
Policy Domains
Resolution provisions
Identified Gains
- Marketplace enrollees above 400 percent of poverty
- Low-income marketplace households
- ACA marketplace insurers
- State marketplace operators
Identified Costs
- Federal taxpayers
- Treasury and IRS administrators
- Federal budget writers
- Employers near affordability thresholds
Sponsors
Legislative Progress
In CommitteeMs. Underwood (for herself, Ms. Castor of Florida, Ms. Schakowsky, …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
ACA marketplace insurers, Low-income marketplace households, Marketplace enrollees above 400 percent of poverty
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology