S3385-119

Introduced

Lower Health Care Costs Act

119th Congress Introduced Dec 8, 2025

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 Lower Health Care Costs Act extends enhanced health insurance subsidies for Americans who purchase coverage through the Affordable Care Act (ACA) marketplaces. These enhanced premium tax credits, which were first expanded under the American Rescue Plan Act of 2021 and later extended by the Inflation Reduction Act, are set to expire at the end of 2025. This bill would extend them through 2028, preventing a sharp increase in health insurance costs for millions of people.

Who Benefits and How
Individuals and families buying marketplace insurance benefit directly through lower monthly premium costs. Without this extension, a family of four earning around $60,000 could see their annual premiums increase by $2,000-$4,000 or more. Middle-income households (those earning 100-400% of the Federal Poverty Level) particularly benefit, as the enhanced credits cap premium costs as a percentage of income. Health insurance companies benefit from continued enrollment, as many people would drop coverage without the subsidies. Hospitals and healthcare providers benefit from fewer uninsured patients and more reliable payment for services.

Who Bears the Burden and How
Federal taxpayers bear the cost of the premium subsidies, which could total tens of billions of dollars over the three-year extension. The U.S. Treasury will collect less tax revenue due to the expanded credits.

Key Provisions
- Extends the enhanced premium tax credit percentages through December 31, 2028
- Maintains the expanded eligibility rules that allow more people to qualify for subsidies
- Applies 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.

At a Glance

What This Bill Does

Extends the enhanced Affordable Care Act premium tax credits for health insurance from 2025 through 2028, maintaining lower healthcare costs for individuals purchasing coverage through health insurance marketplaces.

Who Benefits

  • Individuals purchasing health insurance through ACA marketplaces
  • Middle-income families (100-400% of Federal Poverty Level)
  • Health insurance companies selling marketplace plans

Who Bears Costs

  • Federal government/taxpayers (funding the premium subsidies)
  • US Treasury (reduced tax revenue from credits)

Key Policy Areas

Healthcare, Tax Policy, Insurance

Primary Purpose

Extends the enhanced Affordable Care Act premium tax credits for health insurance from 2025 through 2028, maintaining lower healthcare costs for individuals purchasing coverage through health insurance marketplaces.

Policy Domains

Healthcare Tax Policy Insurance

Legislative Strategy

"Prevent expiration of enhanced ACA premium subsidies that were temporarily expanded under the American Rescue Plan Act and extended by the Inflation Reduction Act, maintaining lower healthcare costs for marketplace consumers"

Identified Gains

  • Individuals purchasing health insurance through ACA marketplaces
  • Middle-income families (100-400% of Federal Poverty Level)
  • Health insurance companies selling marketplace plans
  • Healthcare providers receiving payments from insured patients

Identified Costs

  • Federal government/taxpayers (funding the premium subsidies)
  • US Treasury (reduced tax revenue from credits)

Legislative Progress

Introduced
Introduced Committee Passed
Dec 11, 2025

Cloture on the motion to proceed to the measure not …

Dec 9, 2025

Cloture motion on the motion to proceed to the measure …

Dec 9, 2025

Motion to proceed to consideration of measure made in Senate. …

Dec 8, 2025

Mr. Schumer introduced the following bill; which was read the …

Dec 8, 2025

Read the second time. Placed on Senate Legislative Calendar under …

Dec 8, 2025

Introduced in the Senate. Read the first time. Placed on …

Dec 8, 2025

Introduced in Senate

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Healthcare Beneficiaries
2 mentions across 1 clause
+2 positive

Individuals purchasing health insurance through ACA marketplaces, Middle-income families (100-400% of Federal Poverty Level)

Financial Services
1 mention across 1 clause
+1 positive

Health insurance companies selling marketplace plans

Healthcare
1 mention across 1 clause
+1 positive

Hospitals and healthcare providers

Government
1 mention across 1 clause
-1 negative

Federal government / US Treasury

General Public
1 mention across 1 clause
-1 negative

Taxpayers

1/2
sections analyzed
Full impact breakdown
Senate Roll #644

On the Cloture Motion S. 3385

Motion to Invoke Cloture: Motion to Proceed to S. 3385

Cloture Motion Rejected (51-48, 3/5 majority required)
51 Yea 48 Nay 1 Not Voting
Dec 11, 2025

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Healthcare Tax Policy
Actor Mappings
"irs"
→ Internal Revenue Service (administers premium tax credits)

Key Definitions

Terms defined in this bill

2 terms
"applicable percentage" §36B(b)(3)(A)

The percentage of household income that determines the maximum amount a taxpayer must contribute toward health insurance premiums before receiving the premium tax credit

"premium tax credit eligibility" §36B(c)(1)(E)

Rules determining eligibility for the premium tax credit, including income thresholds based on Federal Poverty Level

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