We have received text from H.R. 247: Health Care Affordability Act of 2025. This bill was received on 2025-01-09, and currently has 26 cosponsors.
Here is a short summary of the bill:
The Health Care Affordability Act of 2025 aims to amend the Internal Revenue Code to enhance accessibility and affordability of health care coverage for individuals and families. Here’s a breakdown of the main provisions of the bill:
1. Expansion of Eligibility for Refundable Credit
The bill proposes to increase eligibility for a refundable tax credit that helps individuals and families afford coverage under qualified health plans. Specifically, it removes the existing cap that limits eligibility to those with household incomes up to 400% of the federal poverty line. This change will allow more people to qualify for financial assistance when purchasing health insurance.
2. Adjustments to Applicable Percentages
The bill introduces a new structure for determining the percentage of income that households will need to contribute towards their health insurance premiums, based on their income levels. The key changes include:
Households with incomes up to 150% of the federal poverty level will not have to pay any premium.
Households with incomes between 150% to 200% of the federal poverty level will have a maximum premium contribution starting at 0% and increasing to 2%.
This pattern continues, with household contributions increasing gradually for those earning from 200% up to over 400% of the poverty line.
At 400% and above, households will also have a maximum contribution of 8.5% of their income for health insurance premiums.
3. Conforming Amendments
The legislation details several amendments to clarify and refine how affordability is measured for these credits. Specific clauses that are currently part of the Internal Revenue Code will be struck out to streamline the process and ensure that the new eligibility criteria are implemented effectively.
4. Effective Date
The provisions outlined in this bill will come into effect for taxable years beginning after December 31, 2025, meaning the changes will apply from 2026 onward.
Relevant Companies
UNH
(UnitedHealth Group Incorporated): This company is a significant player in the health insurance market, and changes to eligibility for health care credits could impact its customer base and premium prices.
ANTM
(Anthem Inc.): Anthem may see changes in enrollment levels as more individuals become eligible for credits to purchase health insurance plans.
CNC
(Centene Corporation): The expansion of tax credits could lead to changes in the number of insured individuals, affecting Centene’s market and service demand.
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