Protecting Health Care and Lowering Costs Act 2025
This bill makes permanent temporary provisions that generally expand eligibility for and increase the amount of the premium tax credit. This bill also repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the One Big Beautiful Bill Act (OBBBA).
Currently, eligible taxpayers may claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To qualify, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the maximum income limit is eliminated, which generally expands eligibility for the premium tax credit.
Further, under current law, the amount of the premium tax credit is partially based on the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the applicable percentages are lowered and the adjustment of the applicable percentages for inflation is eliminated, which generally increases the amount of the premium tax credit.
The bill permanently eliminates the 400% maximum income limit, lowers the applicable percentages, and eliminates the inflation adjustment for the applicable percentages.
Finally, the bill repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the OBBBA, including
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4849 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4849
To repeal health-related portions of An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 1, 2025
Mr. Gray introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To repeal health-related portions of An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Health Care and Lowering
Costs Act of 2025''.
SEC. 2. REPEAL OF RECONCILIATION HEALTH PROVISIONS.
Subtitle B of title VII of An Act to provide for reconciliation
pursuant to title II of H. Con. Res. 14 (Public Law 119-21) is repealed
and any law or regulation referred to in such subtitle shall be applied
as if such subtitle and the amendments made by such subtitle had not
been enacted.
SEC. 3. INCREASE IN ELIGIBILITY FOR PREMIUM TAX CREDIT.
(a) In General.--Subparagraph (A) of section 36B(c)(1) of the
Internal Revenue Code of 1986 is amended by striking ``but does not
exceed 400 percent''.
(b) Applicable Percentages.--
(1) In general.--Subparagraph (A) of section 36B(b)(3) of
the Internal Revenue Code of 1986 is amended to read as
follows:
``(A) Applicable percentage.--The applicable
percentage for any taxable year shall be the percentage
such that the applicable percentage for any taxpayer
whose household income is within an income tier
specified in the following table shall increase, on a
sliding scale in a linear manner, from the initial
premium percentage to the final premium percentage
specified in such table for such income tier:
------------------------------------------------------------------------
The initial The final
``In the case of household income (expressed premium premium
as a percent of poverty line) within the percentage percentage
following income tier: is-- is--
------------------------------------------------------------------------
Up to 150 percent............................. 0 0
150 percent up to 200 percent................. 0 2.0
200 percent up to 250 percent................. 2.0 4.0
250 percent up to 300 percent................. 4.0 6.0
300 percent up to 400 percent................. 6.0 8.5
400 percent and higher........................ 8.5 8.5.''.
------------------------------------------------------------------------
(2) Conforming amendments relating to affordability of
coverage.--
(A) Paragraph (1) of section 36B(c) of such Code is
amended by striking subparagraph (E).
(B) Subparagraph (C) of section 36B(c)(2) of such
Code is amended by striking clause (iv).
(C) Paragraph (4) of section 36B(c) of such Code is
amended by striking subparagraph (F).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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