“A bill to amend the Internal Revenue Code of 1986 to extend and modify the enhanced premium tax credits, and for other purposes.”
No CRS summary available for this bill.
This section extends and modifies the premium tax credit for Affordable Care Act (ACA) Marketplace health insurance premiums (i.e., refundable tax credits available to eligible individuals and families with household income between 100% and 400% of the federal poverty level (FPL), generally) as follows, for taxable years beginning after December 31, 2025: (1) extends the temporary suspension of the credit's phaseout above 400% FPL through taxable years beginning before January 1, 2028 (from before January 1, 2026), and applies the suspension up to 600% FPL for taxable years beginning after December 31, 2026; (2) revises the premium percentage table to add income bands from 400% to 600% FPL with initial and final percentages of 8.5%/8.5% (400%-450%), 10.5%/10.5% (450%-500%), 12.5%/12.5% (500%-550%), 14.5%/10.5% (550%-600%), and 16.5%/16.5% (600%); (3) requires a minimum $5 monthly enrollee premium payment by capping premium assistance at the full monthly premium minus $5; (4) limits eligibility to U.S. citizens (from exclusion of individuals not lawfully present or lawfully present but ineligible aliens); and (5) disqualifies Marketplace plans providing abortion coverage, except when the mother's life is endangered or in cases of rape or incest.
This section amends the cost-sharing reductions (CSR) program under the Patient Protection and Affordable Care Act, which reduces out-of-pocket costs such as deductibles and copayments in silver-level qualified health plans for individuals with household incomes between 100% and 400% of the federal poverty level. Specifically, the section (1) establishes a permanent appropriation of such sums as necessary for CSR payments for plan years beginning on or after January 1, 2027, and (2) limits CSR eligibility for plan years beginning after December 31, 2025, to U.S. citizens by substituting exclusion of individuals "not a citizen of the United States" for exclusion of individuals "not lawfully present" (thus, excluding lawfully present non-citizens previously eligible).