S. 46Senate119th Congress (2025-2027)In Committee

Health Care Affordability Act of 2025

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Updated November 24, 2025 at 3:40 AM UTC

The Health Care Affordability Act of 2025 expands the refundable premium tax credit by removing the 400 % of poverty‑line cap and introducing a new, income‑tiered sliding scale of credit percentages. This makes the credit available to more households, especially those with higher incomes, and adjusts how the credit is calculated. The changes apply to tax years beginning after 2025 and affect anyone who purchases a qualified health plan and claims the credit on their federal tax return.

Key Provisions

Eliminates the current limit that the premium tax credit cannot be claimed by households with income above 400 % of the federal poverty line.
Creates a new sliding‑scale of credit percentages based on income tiers, ranging from 0 % for households up to 150 % of the poverty line to a maximum of 8.5 % for those earning 400 % or more.
Updates related sections of the tax code by removing several sub‑paragraphs that previously limited the credit’s affordability calculations.
Sets the changes to take effect for tax years that start after December 31, 2025.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

January 9, 2025

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SenateIntro Referral

Introduced in Senate

January 9, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

January 9, 2025

Bill Text

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Introduced in SenateIssued January 9, 2025

119th CONGRESS

1st Session

S. 46

IN THE SENATE OF THE UNITED STATES

January 9, 2025

Mrs. Shaheen (for herself, Ms. Baldwin, Mr. Schumer, Mr. Wyden, Mr. Blumenthal, Mr. King, Ms. Hassan, Mr. Welch, Mr. Kaine, Mr. Coons, Ms. Warren, Mr. Durbin, Mrs. Murray, Mr. Warnock, Mrs. Gillibrand, Mr. Reed, Ms. Duckworth, Mr. Van Hollen, Ms. Cortez Masto, Mr. Schatz, Mr. Padilla, Ms. Smith, Ms. Klobuchar, Ms. Rosen, Mr. Kelly, Mr. Booker, Mr. Whitehouse, Mr. Merkley, Mr. Schiff, Mr. Warner, Mr. Markey, Mr. Luján, Ms. Hirono, Mr. Bennet, Mr. Hickenlooper, Mr. Peters, Mr. Fetterman, Mr. Heinrich, Mr. Kim, and Ms. Slotkin) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

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

Short title

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

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 percent	0	0
150 percent up to 200 percent	0	2.0
200 percent up to 250 percent	2.0	4.0
250 percent up to 300 percent	4.0	6.0
300 percent up to 400 percent	6.0	8.5
400 percent and higher	8.5	8.5.