Health Care Affordability Act: Expanding Tax Credits for Health Coverage
This bill aims to make health insurance more accessible by expanding eligibility for the refundable tax credit used to pay premiums. The most significant change is the removal of the upper income limit (400% of the federal poverty line) for credit eligibility, allowing more citizens to receive financial assistance. Furthermore, the act lowers the percentage of income citizens must spend on premiums to qualify for the credit, directly reducing insurance costs for millions of Americans.
Key points
Elimination of Income Cap: The 400% federal poverty line income limit for receiving the refundable health insurance tax credit is removed. This allows higher-income individuals to also qualify for financial assistance.
Lower Premium Costs: The percentage table determining how much household income must be spent on premiums is revised. For all income tiers (including those above 400%), the maximum percentage of income spent on premiums is lowered or capped at 8.5%, making insurance more affordable.
Effective Date: The changes will apply to taxable years beginning after December 31, 2025.
Expired
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