← Back to Bills
H.R. 247House119th Congress (2025-2027)In Committee

Health Care Affordability Act of 2025

Sponsored by Lauren UnderwoodRep. Lauren Underwood (D-IL)
Introduced January 9, 2025

AI-Generated Summary

Updated November 24, 2025 at 3:43 AM UTC

The Health Care Affordability Act of 2025 expands the refundable premium tax credit for health‑insurance coverage by removing the 400 % poverty‑line income cap and introducing a new income‑based sliding scale for the credit. It also deletes certain code provisions that limited how the credit is calculated. The changes take effect for tax years starting in 2026, affecting individuals and families who purchase qualified health plans.

Key Provisions

  • Eliminates the existing limit that the refundable premium tax credit cannot be claimed by households with income above 400 % of the federal poverty line.
  • Creates a new sliding‑scale table that sets the credit’s premium percentage based on household income, ranging from 0 % for incomes up to 150 % of the poverty line up to a maximum of 8.5 % for incomes at or above 400 % of the poverty line.
  • Removes several technical sub‑paragraphs (E, clause iv, and subparagraph F) from the code that previously restricted the credit’s affordability calculations.
  • Applies these changes to taxable years beginning after December 31, 2025.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 9, 2025

View full timeline
HouseIntro Referral

Introduced in House

January 9, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 9, 2025

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in HouseIssued January 9, 2025

I

119th CONGRESS

1st Session

H. R. 247

IN THE HOUSE OF REPRESENTATIVES

January 9, 2025

Ms. Underwood (for herself, Ms. Castor of Florida, Ms. Schakowsky, Ms. DeGette, Mr. Grijalva, Ms. Pettersen, Ms. Barragán, Mr. Panetta, Mr. Hoyer, Ms. Norton, Ms. Titus, Mr. Morelle, Mr. Tonko, Ms. Moore of Wisconsin, Ms. Stevens, Ms. DelBene, Ms. Hoyle of Oregon, Mr. Johnson of Georgia, Ms. Budzinski, Mr. Pocan, Mr. Beyer, Mr. Horsford, and Mr. Amo) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to expand eligibility for the refundable credit for coverage under a qualified health plan.

1.

Short title

This Act may be cited as the Health Care Affordability Act of 2025.

2.

Increase in eligibility for credit

(a)

In general

Subparagraph (A) of section 36B(c)(1) of the Internal Revenue Code of 1986 is amended by striking but does not exceed 400 percent .

(b)

Applicable percentages

(1)

In general

Subparagraph (A) of section 36B(b)(3) of the Internal Revenue Code of 1986 is amended to read as follows:

(A)

Applicable percentage

The applicable percentage for any taxable year shall be the percentage such that the applicable percentage for any taxpayer whose household income is within an income tier specified in the following table shall increase, on a sliding scale in a linear manner, from the initial premium percentage to the final premium percentage specified in such table for such income tier:

In the case of household income
(expressed as a percent of poverty line)
within the following income tier:		The initial premium percentage is—The final premium percentage is—
Up to 150 percent00
150 percent up to 200 percent02.0
200 percent up to 250 percent2.04.0
250 percent up to 300 percent4.06.0
300 percent up to 400 percent6.08.5
400 percent and higher8.58.5.

.

(2)

Conforming amendments relating to affordability of coverage

(A)

Paragraph (1) of section 36B(c) of such Code is amended by striking subparagraph (E).

(B)

Subparagraph (C) of section 36B(c)(2) of such Code is amended by striking clause (iv).

(C)

Paragraph (4) of section 36B(c) of such Code is amended by striking subparagraph (F).

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.