Health Care Affordability Act of 2025
Rep. Underwood Introduces Health Care Affordability Act to Lower Insurance Premiums
The Health Care Affordability Act of 2025 is currently in the early stages of the legislative process. It was recently sent to the House Committee on Ways and Means for review. The bill is actively moving forward, but no further meetings or votes have been scheduled yet.
Part of: story →Legislative Progress
While this is a major priority for Democrats, it faces strong opposition from Republicans who generally oppose expanding government health care spending.
Key Points
- This bill removes the income cap that currently prevents people earning more than 400% of the federal poverty level from receiving premium tax credits for marketplace health insurance. This opens up financial help to middle-class families who currently earn too much to qualify.
From policy text
“Subparagraph (A) of section 36B(c)(1) of the Internal Revenue Code of 1986 is amended by striking ``but does not exceed 400 percent''.”
View in full text - The bill sets up a sliding scale of premium costs based on household income. People earning up to 150% of the poverty level would pay nothing for their benchmark plan premiums, while those earning 400% or more of the poverty level would pay no more than 8.5% of their income.
From policy text
“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.”
View in full text - The changes would take effect starting with the 2026 tax year, meaning people shopping for marketplace plans during the 2026 open enrollment period would see lower costs.
From policy text
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
View in full text - The bill was introduced by Rep. Underwood with over 20 Democratic cosponsors and referred to the House Ways and Means Committee. As a minority-party bill in the 119th Congress, it faces significant hurdles to advancement.
Impact Analysis
Personal Impact
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
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Senate Isn't Working Toward Compromise on Expiring Obamacare Subsidies
Senators rejected both a Democrat-led bill to extend tax credits for three years and a Republican proposal for health savings accounts. The failure to pass the Health Care Affordability Act or a compromise leaves millions facing skyrocketing premiums in 2026 as enhanced subsidies expire.
Pennsylvania congressman prepares bill to extend ACA subsidies as major price hikes loom
Lawmakers are sprinting to avoid premium increases as enhanced subsidies expire. While Democrats push for a clean extension via the Health Care Affordability Act, GOP Rep. Brian Fitzpatrick is proposing a compromise with a 700% poverty level income cap to bolster help for lower earners.
ACA Marketplace Premium Payments Would More than Double on Average Next Year if Enhanced Premium Tax Credits Expire
Analysis shows that expiration of enhanced premium tax credits would increase average annual premiums by 114%, from $888 to $1,904. The Health Care Affordability Act of 2025 was introduced to prevent this by removing the 400% poverty level 'subsidy cliff' and capping premiums at 8.5% of income.
Source Information
Document Type
Congressional Bill
Official Title
Health Care Affordability Act of 2025
Data Sources
Sponsor
Cosponsors
(165)Analysis generated by AI. Always verify with official sources.