Health Care Affordability Act of 2025
Sen. Shaheen Introduces the 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 introduced in the Senate and sent to the Committee on Finance for review. No further actions are scheduled at this time, but the bill is considered active.
Part of: story →Legislative Progress
This bill has support from many Democrats but lacks Republican cosponsors, making it difficult to pass in a divided or Republican-controlled Congress.
Key Points
- This bill removes the income cap that currently blocks people earning more than 400% of the federal poverty level from receiving premium tax credits for health insurance purchased through the ACA marketplace. This would open up financial help to middle-class and upper-middle-class families who currently get no assistance.
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 caps health insurance premium costs at 8.5% of household income for anyone earning 400% of the poverty level or higher. People at lower income levels pay even less, with those under 150% of the poverty level paying nothing toward their premiums.
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 - These changes would take effect for tax years starting after December 31, 2025, meaning the new premium assistance would first apply during the 2026 plan year.
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 Senator Shaheen with strong Democratic support from 40 co-sponsors and referred to the Senate Finance Committee. It faces an uphill battle in a divided Congress.
From policy text
“Mrs. Shaheen (for herself, Ms. Baldwin, Mr. Schumer, Mr. Wyden, Mr. Blumenthal, Mr. King, Ms. Hassan, Mr. Welch, Mr. Kaine, Mr. Coons, Ms. Warren, Mr. Durbin, Mrs. Murray, Mr. Warnock, Mrs. Gillibrand, Mr. Reed, Ms. Duckworth, Mr. Van Hollen, Ms. Cortez Masto, Mr. Schatz, Mr. Padilla, Ms. Smith, Ms. Klobuchar, Ms. Rosen, Mr. Kelly, Mr. Booker, Mr. Whitehouse, Mr. Merkley, Mr. Schiff, Mr. Warner, Mr. Markey, Mr. Lujan, Ms. Hirono, Mr. Bennet, Mr. Hickenlooper, Mr. Peters, Mr. Fetterman, Mr. Heinrich, Mr. Kim, and Ms. Slotkin) introduced the following bill”
View in full text
Impact Analysis
Personal Impact
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
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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The 940-page 'One Big Beautiful Bill Act' cuts spending on Medicaid and food stamps to help cover the cost of extending tax cuts. The legislation notably omits the Democratic proposal to make enhanced ACA premium tax credits permanent, setting up a 'subsidy cliff' at the end of 2025.
Democrats introduce bill to make ACA tax credits permanent
Rep. Lauren Underwood and Sen. Jeanne Shaheen introduced the Health Care Affordability Act of 2025 (H.R. 247/S. 46). The bill would permanently remove the 400% poverty level income cap for premium tax credits and limit health insurance costs to 8.5% of household income.
Source Information
Document Type
Congressional Bill
Official Title
Health Care Affordability Act of 2025
Data Sources
Sponsor
Cosponsors
(44)Analysis generated by AI. Always verify with official sources.