A bill to amend the Internal Revenue Code of 1986 to expand eligibility for the refundable credit for coverage under a qualified health plan.

Hozzl · 2025-01-24T11:56:34Z

Explore the details of Senate Bill 46 A bill to amend the Internal Revenue Code of 1986 to expand eligibility for the refundable credit for coverage under a qualified health plan. currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on undefined. Stay informed on legislative developments.

1/24/2025, 11:56 AM

Summary of Bill S 46

Bill 119 s 46, also known as the "Expand Eligibility for Health Plan Credit Act," is a proposed piece of legislation that aims to make changes to the Internal Revenue Code of 1986 in order to broaden the scope of individuals who are eligible to receive a refundable credit for coverage under a qualified health plan.

The bill seeks to expand the eligibility criteria for this refundable credit, which is currently available to individuals who meet certain income requirements and are enrolled in a qualified health plan. By expanding eligibility, more individuals would be able to receive financial assistance to help cover the costs of their health insurance premiums.

If passed, this bill would provide much-needed support to a larger number of Americans who may be struggling to afford health insurance coverage. It would also help to increase access to quality healthcare for individuals who may not currently qualify for the refundable credit under the existing criteria. Overall, the "Expand Eligibility for Health Plan Credit Act" aims to improve the affordability and accessibility of healthcare for a broader range of individuals, ultimately working towards the goal of ensuring that all Americans have access to the healthcare they need.

Congressional Summary of S 46

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.

Current Status of Bill S 46

Bill S 46 is currently in the status of Bill Introduced since January 9, 2025. Bill S 46 was introduced during Congress 119 and was introduced to the Senate on January 9, 2025. Bill S 46's most recent activity was Read twice and referred to the Committee on Finance. as of January 9, 2025