Health Care Affordability Act of 2025

This bill would make health insurance bought on the marketplace more affordable for more people. It makes permanent the rules that let households at higher incomes qualify for the premium tax credit and keep the credit amounts larger by lowering how much of your income you’re expected to pay for premiums. It keeps the sliding-scale formula that reduces your costs, and it removes the old cutoff that blocked help if your income was above 400% of the federal poverty level. The changes apply starting with the 2026 tax year.

Key points

• Who is affected: People who buy health insurance through the ACA marketplace; households at many income levels, including those above 400% of the federal poverty level.
• What changes: More people can get the premium tax credit, and the credit stays larger by keeping lower contribution percentages on a sliding scale, which lowers monthly premiums.
• When: Starts for tax years after December 31, 2025 (the 2026 tax year).