Sponsors (5)
This bill makes it much easier for low‑income Americans to get and keep health coverage by using tax‑time and federal data matches and by funding the information systems to do it — but it does so at the cost of expanded data sharing, heightened privacy and error risks, substantial state and federal implementation burdens, and potential fiscal exposure.
Uninsured and low-income households (including Medicaid/CHIP-eligible people) can be identified at tax filing and rapidly enrolled or defaulted into zero-net-premium coverage and special enrollment periods, reducing uninsured rates and coverage gaps.
Tax-time data matches, harmonized eligibility definitions (MAGI, family size, poverty line), electronic signatures, and new data exchanges will simplify and speed eligibility determinations and renewals, cutting paperwork and processing time for consumers, Exchanges, and state agencies.
HHS and Treasury receive funding authority and resources (including support for interoperable information exchange and staff/contractors) so implementation can proceed without waiting for separate line-item appropriations, reducing risk of service interruptions.
Expanding IRS, HHS, state, and third‑party data sharing (including transfer of tax return, wage, SSN, and new‑hire data) substantially increases privacy and data‑security risks for taxpayers and beneficiaries if protections fail or breaches occur.
Stale, incorrect, or mismatched federal data matches (IRS, NDNH, wage records, prior‑year MAGI) could lead to wrongful denials, loss of financial help, coverage disruptions, and burdensome appeals for affected individuals.
Automatic or default enrollment into zero-net-premium plans can result in people being placed into plans they would not choose (wrong networks, provider access, unexpected out‑of‑pocket costs) if they miss opt‑outs or do not get timely notice.
Based on analysis of 11 sections of legislative text.
Allows taxpayers to identify uninsured household members on tax returns, share tax data with Exchanges (with consent), and enable data-driven eligibility determinations and auto-enrollment into zero-net-premium plans.
Introduced June 12, 2025 by Christopher Van Hollen · Last progress June 12, 2025
Creates a tax-return-driven enrollment process so people without health coverage can be identified on their federal tax returns, have their tax data shared (with consent) with health insurance Exchanges and programs, and — when eligible — be automatically enrolled into zero-net-premium qualified plans or directed into Medicaid/CHIP with simplified verification. It funds and directs HHS and Treasury/IRS to build data-sharing and IT infrastructure, permit data matches (including National Directory of New Hires data), change some state verification rules, require consumer notices and appeal rights, and produce implementation studies and advisory guidance.