Lower Health Care Costs Act
This bill extends for three years, through 2028, temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit.
Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, 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 ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit.
Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit.
The bill extends for three years, through 2028, the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3385 Placed on Calendar Senate (PCS)]
<DOC>
Calendar No. 284
119th CONGRESS
1st Session
S. 3385
To amend the Internal Revenue Code of 1986 to extend the enhancement of
the health care premium tax credit.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 8 (legislative day, December 4), 2025
Mr. Schumer introduced the following bill; which was read the first
time
December 8. 2025
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend the enhancement of
the health care premium tax credit.
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 ``Lower Health Care Costs Act''.
SEC. 2. EXTENSION OF ENHANCEMENT OF HEALTH CARE PREMIUM TAX CREDIT.
(a) Extension of Rules to Increase Premium Assistance Amounts.--
Clause (iii) of section 36B(b)(3)(A) of the Internal Revenue Code of
1986 is amended--
(1) in the heading, by striking ``through 2025'' and
inserting ``through 2028'', and
(2) in the matter preceding subclause (I), by striking
``before January 1, 2026'' and inserting ``before January 1,
2029''.
(b) Extension of Rule to Allow Credit to Taxpayers Whose Household
Income Exceeds 400 Percent of Poverty Line.--Subparagraph (E) of
section 36B(c)(1) of the Internal Revenue Code of 1986 is amended--
(1) in the heading, by striking ``through 2025'' and
inserting ``through 2028'', and
(2) by striking ``before January 1, 2026'' and inserting
``before January 1, 2029''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
Calendar No. 284
119th CONGRESS
1st Session
S. 3385
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend the enhancement of
the health care premium tax credit.
_______________________________________________________________________
December 8. 2025
Read the second time and placed on the calendar
Introduced in Senate
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time. (Legislative Day December 4, 2025). (text: CR S8530-8531)
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 284.
Motion to proceed to consideration of measure made in Senate. (CR S8567)
Cloture motion on the motion to proceed to the measure presented in Senate. (CR S8567)
Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 51 - 48. Record Vote Number: 644. (CR S8654-8655)
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