H.R. 6246: Save American Healthcare Act

This proposed legislation, titled the Save American Healthcare Act, aims to amend the Internal Revenue Code of 1986 concerning health insurance premium tax credits. The key components of the bill are as follows:

Extension of Health Insurance Premium Tax Credits

The bill seeks to extend certain provisions regarding health insurance premium tax credits that allow taxpayers with household incomes above 400 percent of the poverty line to qualify for these credits.

Temporary Rule for Taxpayers

• The current tax code provisions allowing premium tax credits will be modified so that taxpayers can receive credits without being limited to the income cap of 400 percent of the poverty line.
• This temporary rule is applicable to taxable years before a specified 'applicable date' set by the Secretary, which is determined based on fiscal impacts not exceeding certain thresholds.
• To define this applicable date, the bill states it will be the latest date estimated to balance out federal government outlays and revenue reductions due to these tax credits with revenue collected from newly imposed or increased tariffs after a defined date (January 19, 2025).

Increased Premium Assistance Amounts

The bill also proposes to extend rules that increase the amounts of premium assistance available to eligible individuals. This would replace current temporary provisions that only apply through the year 2025, allowing for a more extended period where increased assistance could be offered.

Effective Date

The changes introduced by this bill would come into effect for taxable years beginning after December 31, 2025, meaning the enhancements to tax credits and assistance would apply starting in the following tax year.

Funding Mechanisms

The funding for the extended tax credits and increased premium assistance would be sourced from additional tariff revenue, which is expected from tariffs imposed or increased after January 19, 2025, highlighting the bill's reliance on external revenue sources to offset federal costs.

Summary of Key Effects

• Taxpayers can receive health insurance premium tax credits regardless of whether their income exceeds 400 percent of the poverty line, temporarily.
• The increase in assistance amounts for health insurance premiums will be extended beyond the previously limited period.
• Financial adjustments will be guided by tariff revenue, aiming for a balance between increased government outlays for health care credits and incoming funds from tariffs.

Relevant Companies

None found