Protecting Health Care and Lowering Costs Act of 2025
August 1, 2025
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Where This Stands
Currently in_committee. The next step in the legislative lifecycle is Floor Vote.
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →The Frame
This bill would change the amount of federal tax credits available to households for health insurance premiums, directly affecting the out-of-pocket costs for individuals purchasing coverage through insurance exchanges starting in 2026.
Potentially affected actors named in the source documents. Mention is not a position.
Health insurance exchange enrollees
Individuals purchasing insurance through exchanges will have their premium tax credit calculations adjusted based on the new sliding scale.
Internal Revenue Service
The agency must implement and administer the new premium tax credit calculations for tax years starting in 2026.
Current stage: in_committee.
Floor Vote.
Summary
Key Facts
- Repeals Subtitle B of title VII of Public Law 119-21, effectively reverting health-related reconciliation provisions.
- Removes the 400 percent federal poverty line cap for premium tax credit eligibility.
- Sets a new sliding scale for premium percentages: 0% for income up to 150% of poverty line; 0-2% for 150-200%; 2-4% for 200-250%; 4-6% for 250-300%; 6-8.5% for 300-400%; and 8.5% for 400% and higher.
- The new tax credit rules apply to taxable years beginning after December 31, 2025.
- Repeals specific conforming amendments related to the affordability of coverage within the Internal Revenue Code of 1986.
Why It Matters
This bill would change the amount of federal tax credits available to households for health insurance premiums, directly affecting the out-of-pocket costs for individuals purchasing coverage through insurance exchanges starting in 2026.
Frequently Asked Questions
How will this change my health insurance costs?
Does this bill remove the income limit for tax credits?
News Coverage
Lobbying Activity
AARP
2026
“P.L. 119-21, One Big Beautiful Bill Act H.R. 8867, Planning for Long-term Aging Needs (PLAN) Act H.R. 5861, Legacy Act of 2025 H.R. 9393, the Lower Costs, More Transparency Act. H.R. 9396, the Prior Authorization Accountability Act. S. 4916, the Aging with Artificial Intelligence Act. H.R. 8100, Safe Staffing Saves Lives Act. S. 3886, Nurses Belong in Nursing Homes Act. H.R. 6766/S. 3492, the Essential Caregivers Act of 2025. H.R. 7966/S. 4118, Hospice Care Accountability, Reform, and Enforcement (Hospice CARE) Act. S. 2120, the Older Americans Act Reauthorization Act of 2025 H.R. 5575, the Firefighters Assisting Seniors to Emergency Response (FASTER) Act of 2025. H.R. 3954/S. 4641, Improving Access to Medicare Coverage Act. H.R.5554/S.2831, Stand Strong for Medicare Act. S. 3439/H.R. 6735, Connecting Caregivers to Medicare Act and efforts related to the bill S. 1227/H.R. 2491, Alleviating Barriers for Caregivers Act S. 668/H.R. 3183, Supporting Access to Falls Education and Prevention and Strengthening Training Efforts and Promoting Safety Initiatives (SAFE STEPS) for Veterans Act of 2025 CMS-1851-P, Hospice Proposed rule. CMS-1843-P, Skilled Nursing Facility Proposed rule. CMS-1844-P, Home Health Proposed rule. No bill number. Health care transparency. No bill number. Discussed use of artificial intelligence and health data technology. No bill number. Discussed health-related policies and activities around the fall respiratory virus season. No bill number. Discussed health insurance affordability proposals. No bill number. Discussed Nursing Home staffing standards, safety, and quality. No bill number. Discussed Nursing home transparency and ownership requirements. No bill number. Discussed home health, hospice, and long-term care. No bill number. Discussed falls prevention. No bill number. Discussed social isolation. No bill number. Discussed HUD Assisted Living Requirements No bill number. Discussed family caregiving. No bill number. Discussed AARP paper on Medicare Caregiver Training Services. No bill number. Discussed Medicaid community engagement interim final rule, including the family caregiver exemption. No bill number. Discussed the paid direct care workforce in long-term care. No bill number. Discussed the unaffordability of long-term care. No bill number. Discussed Money Follows the Person Rebalancing Demonstration Program and Medicaid HCBS spousal impoverishment protections. No bill number. Discussed Medicaid fraud and family caregivers, Medicaid self-direction programs. No bill number. Discussed sandwich generation family caregiver hearing and submitted a statement for the record discussing family caregivers and sandwich generation caregivers, programs that support them, AARP caregiving resources, and federal policies to support sandwich generation caregivers and caregivers more broadly. No bill number. Discussed long-term care. No bill number. CMS-2453-NC; Medicaid Program; 2028 Medicaid Home and Community-Based Services Quality Measure Set Submitted comments No bill number. Discussed expanding access to home care. No bill number. Discussed the increasing cost of home care No bill number. Discussed HSA use for telehealth chronic care management services/subscriptions. No bill number. Discussed artificial intelligence and technology”
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Removal of Income Cap
The bill explicitly removes the 400% federal poverty line cap for premium tax credit eligibility, signaling a shift toward broader subsidy access.
Connected Entities
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy60Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz40Current news / social attention level
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