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
The bill creates extends the enhanced premium tax credits for ACA marketplace health insurance from 2026 through 2027 and expands income eligibility from 400% to 700% of the federal poverty level, creates allows individuals to elect to receive advance premium tax credit payments directly or deposit them into a designated Personal HSA instead of having them paid to insurance issuers, and establishes a minimum premium responsibility amount that reduces the maximum premium assistance available, requiring individuals to pay a baseline amount toward their health insurance premiums. It relies on tax credits, compliance mandates, definition changes, and appropriations. The main policy areas are Healthcare and Finance.
Who Benefits and How
Middle and upper-middle income households (400-700% FPL) could see lower costs, Health insurance companies offering silver-level ACA plans could gain revenue opportunities, and Health insurance companies offering ACA marketplace plans could gain revenue opportunities.
Who Bears the Burden and How
Unauthorized immigrants could face higher barriers, Health insurance exchanges would take on compliance duties, and Individuals receiving premium tax credits could face higher costs.
Key Provisions
- Creates extends the enhanced premium tax credits for ACA marketplace health insurance from 2026 through 2027 and expands income eligibility from 400% to 700% of the federal poverty level.
- Creates allows individuals to elect to receive advance premium tax credit payments directly or deposit them into a designated Personal HSA instead of having them paid to insurance issuers.
- Establishes a minimum premium responsibility amount that reduces the maximum premium assistance available, requiring individuals to pay a baseline amount toward their health insurance premiums.
- Authorizes appropriations for cost-sharing reduction (CSR) payments under the ACA, providing explicit legal authority for federal spending on these subsidies.
- Requires the Secretary of Treasury and HHS, in consultation with DHS, to assist health insurance exchanges in determining whether alien individuals are lawfully present and, after 2026, whether they are 'eligible...
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
The bill creates extends the enhanced premium tax credits for ACA marketplace health insurance from 2026 through 2027 and expands income eligibility from 400% to 700% of the federal poverty level, creates allows individuals to elect to receive advance premium tax credit payments directly or deposit them into a designated Personal HSA instead of having them paid to insurance issuers, and establishes a minimum premium responsibility amount that reduces the maximum premium assistance available, requiring individuals to pay a baseline amount toward their health insurance premiums.
Key Policy Areas
Healthcare, Finance
Primary Purpose
The bill creates extends the enhanced premium tax credits for ACA marketplace health insurance from 2026 through 2027 and expands income eligibility from 400% to 700% of the federal poverty level, creates allows individuals to elect to receive advance premium tax credit payments directly or deposit them into a designated Personal HSA instead of having them paid to insurance issuers, and establishes a minimum premium responsibility amount that reduces the maximum premium assistance available, requiring individuals to pay a baseline amount toward their health insurance premiums.
Policy Domains
Tax Credit Extension Act
Identified Gains
- Middle and upper-middle income households (400-700% FPL)
- Health insurance companies offering silver-level ACA plans
- Health insurance companies offering ACA marketplace plans
- Low-income individuals enrolled in silver plans
- Individuals with bronze or catastrophic health plans
Identified Costs
- Unauthorized immigrants
- Health insurance exchanges
- Individuals receiving premium tax credits
- Department of Homeland Security
- Health insurance issuers currently receiving advance payments
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