Health Care Affordability Act of 2025
Official title: A bill to amend the Internal Revenue Code of 1986 to expand eligibility for the refundable credit for coverage under a qualified health plan.
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Read twice and referred to the Committee on Finance.
Health Care Affordability Act of 2025
This bill makes permanent 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 makes permanent the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.
- Introduced in Senate Formatted Text PDF Formatted XML
- MASON CONSULTING, LLC
- MASON CONSULTING, LLC
- AMERICA'S HEALTH INSURANCE PLANS, INC. (AHIP)
- CENTER ON BUDGET AND POLICY PRIORITIES
- NATIONAL ALLIANCE ON MENTAL ILLNESS
- ARTHRITIS FOUNDATION
Bodies those filers lobbied
- HOUSE OF REPRESENTATIVES
- SENATE
- Health & Human Services, Dept of (HHS)
- Centers For Medicare and Medicaid Services (CMS)
- Labor, Dept of (DOL)
- Natl Institutes of Health (NIH)
- Veterans Affairs, Dept of (VA)
- Food & Drug Administration (FDA)
Cite this page
U.S. Congress. (2026). S. 46: Health Care Affordability Act of 2025. 119th Congress. Open America. https://openamerica.io/bill/119-S-46/
"S. 46: Health Care Affordability Act of 2025." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-S-46/.
S. 46, 119th Cong. (2026), https://openamerica.io/bill/119-S-46/.
[S. 46: Health Care Affordability Act of 2025](https://openamerica.io/bill/119-S-46/)