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Congress·In Committee·H.R. 4849

House Bill Would Cap Health Insurance Premiums at 8.5% of Income, Expand Tax Credit Eligibility

Protecting Health Care and Lowering Costs Act of 2025

8 months ago·View on Congress.gov
Part of: Congress Proposes Extending ACA Tax Credits and 2026 Enrollment Window
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Stalled

No legislative action in over 90 days.

Legislative Progress

House
Senate
President
Law

Key Points

  • Congress would repeal certain health-related parts of a recent budget law, rolling those changes back as if they never happened.

    From policy text

    “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 Res. 14 (Public Law 119-21) is repealed and any law or regulation referred to in such subtitle shall be applied as if such subtitle and the amendments made by such subtitle had not been enacted.”
    View in full text
  • The bill would expand who can get health insurance premium tax credits by removing the current income cutoff tied to the poverty line.

    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''.”
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  • It would set a premium cost cap so eligible families generally wouldn’t have to pay more than 8.5% of their income for benchmark coverage, even at higher incomes.

    From policy text

    “400 percent and higher........................ 8.5 8.5.''”
    View in full text
  • For lower-income households, the bill keeps very low required premium shares, including 0% for people up to 150% of the poverty line.

    From policy text

    “Up to 150 percent............................. 0 0”
    View in full text
  • These tax credit changes would start for tax years beginning after December 31, 2025, affecting coverage and taxes in 2026.

    From policy text

    “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
    View in full text
HealthcareTaxesConsumer Protection

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(2)
Housing Assistance
Neutral
Renter
Neutral
Positive Impacts(4)
Chronic Illness
Helps
Child Tax Credit
Helps
Small Business Owner
Helps
Gig Worker
Helps

Political Response

Milestones

2 milestones2 actions
Aug 1, 2025House

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.

Aug 1, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Before and during enrollment for 2026 marketplace plans

Marketplace shoppers see the new subsidy rules during 2026 open enrollment (timing depends on marketplace calendar)

When you apply for 2026 coverage, your estimated subsidy could be larger or you could become newly eligible, lowering the monthly bill you see when picking a plan.

During 2027 tax filing season for 2026 taxes

IRS forms and tax filing for 2026 reflect the new premium tax credit eligibility

When filing taxes for 2026, households may reconcile (true-up) the larger/new credit based on actual annual income, which could change refunds or amounts owed.

3 Articles

news_articleCenter Left

Inside Congress' failed battle to keep Obamacare premiums from skyrocketing

news_articleCenter

Negotiators Say Talks to Restore ACA Subsidies Likely Dead

news_articleCenter Left

'A life-or-death issue': Obamacare premiums have skyrocketed. New England is feeling the crunch.

Source Information

Document Type

Congressional Bill

Official Title

Protecting Health Care and Lowering Costs Act of 2025

Bill NumberHR 4849
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred 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.

Sponsor

Cosponsors

(137)
D: 137

Analysis generated by AI. Always verify with official sources.