To amend the Internal Revenue Code of 1986 to extend the premium tax credit and provide for advance payment of the credit to taxpayers, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill extends the enhanced premium tax credits for health insurance purchased through the Affordable Care Act marketplaces from 2026 through 2027. It also expands eligibility to households earning up to 700% of the federal poverty level and allows individuals to receive their tax credit payments directly or deposit them into a Health Savings Account.
Who Benefits and How
Middle and upper-middle income households (above 400% FPL) gain access to subsidized health insurance for the first time. Health insurance companies benefit from continued government subsidies that help customers afford premiums. Individuals with bronze plans or catastrophic coverage can now direct their premium subsidies to HSAs, gaining tax-advantaged savings.
Who Bears the Burden and How
Federal taxpayers bear the cost of extended and expanded subsidies. Unauthorized immigrants and non-eligible aliens are explicitly excluded from benefits. Health exchanges face new administrative requirements to verify immigration status in coordination with DHS.
Key Provisions
- Extends enhanced premium tax credits through 2027 (was set to expire in 2026)
- Expands income eligibility from 400% to 700% of federal poverty level
- Allows advance premium payments directly to individuals or to HSAs
- Authorizes appropriations for cost-sharing reduction payments
- Requires immigration status verification for credit eligibility
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Extends and expands the premium tax credit for health insurance purchased through ACA exchanges, allowing advance payments directly to individuals or Health Savings Accounts, and clarifies immigration eligibility requirements.
Key Policy Areas
Healthcare, Taxation, Immigration
Primary Purpose
Extends and expands the premium tax credit for health insurance purchased through ACA exchanges, allowing advance payments directly to individuals or Health Savings Accounts, and clarifies immigration eligibility requirements.
Policy Domains
Tax Credit Extension Act
Identified Gains
Contextual inference, no direct clause citation- Middle-income households (400-700% FPL)
- Health insurance companies
- HSA providers
- Individuals with bronze/catastrophic plans
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal taxpayers
- Unauthorized immigrants
- Health insurance exchanges (administrative burden)
Contextual inference, no direct clause citation
Legislative Progress
IntroducedMr. Van Drew introduced the following bill; which was referred …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Individuals receiving premium tax credits, Individuals with bronze or catastrophic health plans, Low-income individuals enrolled in silver plans
Positive-direction: Individuals with bronze or catastrophic health plans, Low-income individuals enrolled in silver plans, Middle and upper-middle income households (400-700% FPL)
Negative-direction: Individuals receiving premium tax credits, Unauthorized immigrants
Health Savings Account custodians and administrators, Health insurance companies offering ACA marketplace plans, Health insurance companies offering silver-level ACA plans
Positive-direction: Health Savings Account custodians and administrators, Health insurance companies offering ACA marketplace plans, Health insurance companies offering silver-level ACA plans
Negative-direction: Health insurance exchanges, Health insurance issuers currently receiving advance payments
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "secretary_of_hhs"
- → Secretary of Health and Human Services
- "secretary_of_homeland_security"
- → Secretary of Homeland Security
Note: 'The Secretary' primarily refers to Secretary of the Treasury for tax provisions, but section 4 requires consultation with Secretary of HHS, and section 6 involves coordination with Secretary of Homeland Security
Key Definitions
Terms defined in this bill
An alien lawfully present in the United States who meets specific eligibility criteria for the premium tax credit (applicable to taxable years beginning after December 31, 2026)
A health savings account as defined in section 223(h) of the Internal Revenue Code of 1986 that an individual may elect to designate for receiving advance premium tax credit payments
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