S. 46 — Health Care Affordability Act of 2025

This section expands eligibility for the premium tax credit—available to subsidize qualified health plans purchased through Affordable Care Act exchanges—to households with income above 400% of the federal poverty level (FPL) by striking the statutory income cap, revises the applicable percentage table used to calculate the credit (i.e., the share of income that premium contributions may not exceed), and makes conforming amendments striking certain affordability-related provisions, for taxable years beginning after December 31, 2025. The revised table provides for the following sliding scale percentages by income tier (expressed as a percent of FPL): (1) up to 150%, 0%; (2) 150% up to 200%, 0% to 2.0%; (3) 200% up to 250%, 2.0% to 4.0%; (4) 250% up to 300%, 4.0% to 6.0%; (5) 300% up to 400%, 6.0% to 8.5%; and (6) 400% and higher, 8.5%. (Thus, premium contributions are capped at 8.5% of income for all households above 400% FPL.)