Health Care Affordability Act of 2025

The Health Care Affordability Act of 2025 proposes to make permanent several temporary expansions to the premium tax credit, which helps individuals and families afford health insurance through the federal and state marketplaces. Under current law, these expanded subsidies are set to expire after 2025. If this bill becomes law, it would remove the income cap that currently prevents those earning more than 400 percent of the federal poverty level from receiving financial assistance.

Additionally, the bill aims to keep monthly insurance payments lower by permanently reducing the percentage of household income that individuals are expected to contribute toward their premiums. By locking in these lower rates and broader eligibility rules, the legislation would prevent a scheduled increase in insurance costs for millions of Americans who buy their own coverage. The bill would also eliminate certain inflation-based adjustments that could otherwise reduce the size of the tax credit over time.