S. 2556 — Protecting Health Care and Lowering Costs Act

This section repeals Subtitle B of Title VII of P.L. 119-21 (the reconciliation act pursuant to H. Con. Res. 14) and restores any referenced laws or regulations to their status prior to that subtitle's enactment.

This section eliminates the 400% of federal poverty level (FPL) household income cap on eligibility for the premium tax credit (PTC), which subsidizes Affordable Care Act marketplace health insurance premiums based on a percentage of income. It revises the applicable percentage table to provide PTC subsidies on a sliding scale across the following tiers: (1) up to 150% FPL, 0%; (2) 150%-200% FPL, 0%-2.0%; (3) 200%-250% FPL, 2.0%-4.0%; (4) 250%-300% FPL, 4.0%-6.0%; (5) 300%-400% FPL, 6.0%-8.5%; and (6) over 400% FPL, 8.5% (from 0%). It also makes conforming amendments by striking related affordability provisions. The changes apply to taxable years beginning after December 31, 2025. (Thus, PTC subsidies are available for all income levels, with households above 400% FPL responsible for no more than 8.5% of income toward premiums.)