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Health Care Affordability Act of 2025
2/6/2025, 9:06 AM
Summary of Bill HR 247
The proposed changes in this bill would allow more individuals to qualify for this credit, potentially increasing access to affordable health insurance for a larger portion of the population. By expanding eligibility, the bill seeks to address the issue of healthcare affordability and improve access to healthcare services for more Americans.
Overall, Bill 119 HR 247 is focused on making healthcare more accessible and affordable for individuals by expanding eligibility for the refundable credit for coverage under a qualified health plan. This bill is an important step towards improving healthcare access and affordability in the United States.
Congressional Summary of HR 247
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.
