S. 2556: Protecting Health Care and Lowering Costs Act
This bill, titled the Protecting Health Care and Lowering Costs Act
, proposes several key changes related to health care policy and tax incentives for individuals purchasing health insurance. Below are the main provisions included in the bill:
Repeal of Previous Changes
The bill seeks to repeal specific changes made by the health subtitle of a previous law known as the One Big Beautiful Bill Act (Public Law 119-21). This means that the current laws and regulations that were altered by that subtitle will remain as they were before the changes were made.
Permanent Extension of Enhanced Tax Credit
The bill aims to permanently extend and modify certain tax credits available to individuals under the Internal Revenue Code. This primarily affects those purchasing health insurance through the marketplace.
- Income Limits Change: The bill removes the existing upper income limit for receiving these tax credits, which was previously capped at 400% of the federal poverty level. This change allows more individuals, regardless of income, to qualify for financial assistance when purchasing insurance.
- Adjustments to Applicable Percentages: The bill establishes a new sliding scale for determining how much individuals are expected to pay for their premiums, based on their income. For example, those earning up to 150% of the poverty line would not pay anything for their premiums, while the expected costs increase gradually for higher income brackets.
Effective Date
The modifications concerning the tax credits are set to take effect for taxable years beginning after December 31, 2025. This means that the new rules would start to apply to individuals' tax situations from the 2026 tax year onward.
Summary of Tax Credit Adjustments
To summarize the changes regarding tax credits:
- Individuals with household incomes up to 150% of the poverty line will pay 0% of their income toward premiums.
- For incomes between 150% and 200%, the expected premium payment starts at 0% and rises to 2%.
- As income increases, the percentage of income that individuals are expected to pay for premiums will increase gradually, reaching a cap of 8.5% for those at 400% of the poverty line or higher.
Relevant Companies
- UNH (UnitedHealth Group): This company may be impacted by changes in health insurance purchasing patterns due to the modified tax credits, potentially altering demand for their plans.
- ANTM (Anthem, Inc.): As health insurance providers, changes in premium costs and tax credits may influence competition and pricing strategies.
- CNC (Centene Corporation): Similar to other insurers, modifications in subsidies and eligibility could affect enrollment numbers and revenue.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
47 bill sponsors
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TrackCharles E. Schumer
Sponsor
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TrackAngela Alsobrooks
Co-Sponsor
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TrackTammy Baldwin
Co-Sponsor
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TrackMichael F. Bennet
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TrackRichard Blumenthal
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TrackLisa Blunt Rochester
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TrackCory A. Booker
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TrackMaria Cantwell
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TrackChristopher A. Coons
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TrackCatherine Cortez Masto
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TrackTammy Duckworth
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TrackRichard J. Durbin
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TrackJohn Fetterman
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TrackRuben Gallego
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TrackKirsten E. Gillibrand
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TrackMargaret Wood Hassan
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TrackMartin Heinrich
Co-Sponsor
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TrackJohn W. Hickenlooper
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TrackMazie K. Hirono
Co-Sponsor
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TrackTim Kaine
Co-Sponsor
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TrackMark Kelly
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TrackAndy Kim
Co-Sponsor
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TrackAngus S. King Jr.
Co-Sponsor
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TrackAmy Klobuchar
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TrackBen Ray Lujan
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TrackEdward J. Markey
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TrackJeff Merkley
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TrackChristopher Murphy
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TrackPatty Murray
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TrackJon Ossoff
Co-Sponsor
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TrackAlex Padilla
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TrackGary C. Peters
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TrackJack Reed
Co-Sponsor
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TrackJacky Rosen
Co-Sponsor
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TrackBernard Sanders
Co-Sponsor
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TrackBrian Schatz
Co-Sponsor
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TrackAdam B. Schiff
Co-Sponsor
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TrackJeanne Shaheen
Co-Sponsor
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TrackElissa Slotkin
Co-Sponsor
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TrackTina Smith
Co-Sponsor
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TrackChris Van Hollen
Co-Sponsor
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TrackMark R. Warner
Co-Sponsor
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TrackRaphael G. Warnock
Co-Sponsor
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TrackElizabeth Warren
Co-Sponsor
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TrackPeter Welch
Co-Sponsor
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TrackSheldon Whitehouse
Co-Sponsor
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TrackRon Wyden
Co-Sponsor
Actions
2 actions
| Date | Action |
|---|---|
| Jul. 30, 2025 | Introduced in Senate |
| Jul. 30, 2025 | Read twice and referred to the Committee on Finance. (text: CR S4908) |
Corporate Lobbying
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