New Bill: Representative Lloyd Doggett introduces H.R. 609: Assuring Medicare’s Promise Act of 2025

We have received text from H.R. 609: Assuring Medicare’s Promise Act of 2025. This bill was received on 2025-01-22, and currently has 49 cosponsors.

Here is a short summary of the bill:

This bill, known as the Assuring Medicare’s Promise Act of 2025, aims to modify the funding and taxation related to certain aspects of Medicare, specifically concerning the net investment income tax. Here’s a summary of its key provisions:

Inclusion of Net Investment Income Tax

The bill proposes to include revenues from the net investment income tax into the Federal Hospital Insurance Trust Fund. This would entail the following:

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  The federal taxes collected under the net investment income tax, as specified in the Internal Revenue Code, would be reported to the Secretary of the Treasury.
  


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  These changes would take effect for taxable years starting after December 31, 2025.
  

Changes to How the Net Investment Income Tax is Applied

The bill introduces modifications to the application of the net investment income tax for certain high-income individuals:

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  If an individual has a modified adjusted gross income exceeding a specified threshold, the calculation of the net investment income tax will take into account both net investment income and specified net income.
  


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  The "high income threshold amount" is defined as $400,000 for single taxpayers, $500,000 for married taxpayers filing jointly, and half of these amounts for married individuals filing separately.
  


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  There are provisions for phase-in increases to the taxable amounts, so that the increase in tax does not exceed certain limits based on the individual’s excess income over these thresholds.
  

Application to Trusts and Estates

The changes would also affect how trusts and estates calculate their tax obligations by modifying the existing language about undistributed net investment income.

Clarifications on Net Investment Income Determination

The bill aims to clarify what constitutes net investment income and introduces exceptions:

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  It specifies that net investment income excludes certain income linked to self-employment, wages earned through employment subject to specific taxation, and wages from foreign employment.
  


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  Also, it will not factor in net operating losses as part of the income calculation.
  


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  The bill allows inclusion of specific foreign income that was previously not accounted for under the net investment income tax.
  


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  The Secretary of Treasury is directed to issue guidelines related to the treatment of previously taxed income related to distributions, ensuring clarity in regulations.
  

Effective Dates

The provisions of this bill would generally take effect for taxable years beginning after December 31, 2025, allowing a transition period for necessary adjustments by individuals and businesses affected by the changes.

Relevant Companies

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  AMGN
  
  - Amgen is a biotechnology company that may see indirect impacts from changes in Medicare funding related to healthcare reimbursements.
  


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  UNH
  
  - UnitedHealth Group is a major healthcare company that might face changes in the market landscape due to shifts in Medicare financing.
  


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  JNJ
  
  - Johnson & Johnson, involved in pharmaceuticals and medical devices, may be affected by altered Medicare policies.
  

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