Protecting Health Care and Lowering Costs Act of 2025
Summary
What This Bill Does
The Protecting Health Care and Lowering Costs Act has two main parts. First, it repeals Subtitle B of title VII of Public Law 119-21 and instructs that any law or regulation referenced in that subtitle be applied as if the subtitle and its amendments had not been enacted. Second, it amends Internal Revenue Code section 36B to increase premium tax credit eligibility. It removes the rule that household income must not exceed 400 percent of the poverty line. It then rewrites the applicable-percentage table: households up to 150 percent of poverty owe 0 percent, 150 to 200 percent slide from 0 to 2 percent, 200 to 250 percent from 2 to 4 percent, 250 to 300 percent from 4 to 6 percent, 300 to 400 percent from 6 to 8.5 percent, and households at 400 percent and higher owe 8.5 percent. The changes apply to taxable years beginning after December 31, 2025.
Who Benefits and How
ACA marketplace enrollees benefit from larger or more widely available premium tax credits beginning after 2025. Households above 400 percent of poverty benefit because the income cap is removed and premium contribution is capped at 8.5 percent. Low-income marketplace enrollees benefit because required premium contribution remains 0 percent up to 150 percent of poverty. Health insurers selling marketplace plans benefit if enhanced subsidies increase enrollment and reduce premium nonpayment risk.
Who Bears the Burden and How
Federal taxpayers bear the cost of expanded premium tax credits and repealed reconciliation health savings. IRS administrators must update premium tax credit eligibility, applicable percentages, forms, and reconciliation systems. Health policy offices must apply laws and regulations as if Public Law 119-21 Subtitle B had not been enacted. Opponents of enhanced ACA subsidies lose the 400 percent income cap and lower federal subsidy exposure.
Key Provisions
- Repeals Subtitle B of title VII of Public Law 119-21.
- Removes the 400 percent of poverty income cap for premium tax credit eligibility.
- Establishes applicable premium percentages from 0 percent up to 8.5 percent by income tier.
- Requires the premium tax credit changes for 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
Repeals Subtitle B health provisions of Public Law 119-21 and expands Affordable Care Act premium tax credit eligibility by removing the 400 percent of poverty cap, setting zero premium contribution up to 150 percent of poverty, sliding contributions from 0 to 8.5 percent across higher income tiers, and capping required contributions at 8.5 percent for households above 400 percent of poverty beginning after 2025.
Key Policy Areas
Health Insurance, Tax, Affordable Care Act
Primary Purpose
Repeals Subtitle B health provisions of Public Law 119-21 and expands Affordable Care Act premium tax credit eligibility by removing the 400 percent of poverty cap, setting zero premium contribution up to 150 percent of poverty, sliding contributions from 0 to 8.5 percent across higher income tiers, and capping required contributions at 8.5 percent for households above 400 percent of poverty beginning after 2025.
Policy Domains
Resolution provisions
Identified Gains
- ACA marketplace enrollees
- Households above 400 percent poverty
- Low-income marketplace enrollees
- Marketplace health insurers
Identified Costs
- Federal taxpayers
- IRS administrators
- Health policy offices
- Enhanced subsidy opponents
Sponsors
Legislative Progress
In CommitteeMr. Gray introduced the following bill; which was referred to …
Referred to the Committee on Ways and Means, and in …
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
ACA marketplace enrollees, Households above 400 percent poverty, Marketplace health insurers
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