Protecting Health Care and Lowering Costs Act of 2025
- Bill Number
- H.R. 4849
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-08-01: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-06-04T22:26:21Z
AI-Generated Summary
Purpose
- The bill seeks to repeal specific health-related provisions from a prior reconciliation law (Public Law 119-21) and to expand access to premium tax credits for health insurance under the Internal Revenue Code.
Key Provisions
- Short Title: The Act is named the "Protecting Health Care and Lowering Costs Act of 2025."
- Repeal of Prior Provisions: Subtitle B of title VII of An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14 (Public Law 119-21) is fully repealed, with affected laws and regulations to be treated as if the subtitle and its amendments were never enacted.
- Premium Tax Credit Expansion:
- Removes the upper income limit (previously 400 percent of the federal poverty line) for eligibility under section 36B(c)(1) of the Internal Revenue Code.
- Revises the applicable percentage table in section 36B(b)(3) to adjust contribution amounts on a sliding scale, with rates ranging from 0 percent (up to 150 percent of poverty line) to 8.5 percent (at 400 percent and higher).
- Makes conforming changes by removing certain affordability rules in sections 36B(c)(1), 36B(c)(2), and 36B(c)(4).
- Effective Date: Changes to the premium tax credit apply to taxable years beginning after December 31, 2025.
Significant Changes to Existing Law
- Reverses health provisions enacted in the referenced reconciliation act, restoring prior legal status to impacted programs and regulations.
- Broadens the premium tax credit beyond its previous income cap and modifies contribution percentages to reduce required payments at higher income levels.
- Eliminates related provisions on coverage affordability that previously limited credit access.
Potential Impacts
- On Citizens: May increase eligibility for financial assistance with health insurance premiums, potentially lowering out-of-pocket costs for a wider range of income groups.
- On Government Agencies: Could raise administrative workload for the Internal Revenue Service (in tax credit processing) and the Department of Health and Human Services (in insurance market oversight), along with higher federal spending on subsidies.
- On International Relations: No direct effects identified, as the legislation focuses solely on domestic health and tax policy.
Main Stakeholders Affected
- Individuals and families purchasing health insurance through marketplaces.
- Health insurance issuers and providers operating under subsidized plans.
- Federal agencies including the Treasury Department, Internal Revenue Service, and Centers for Medicare & Medicaid Services.
- State governments involved in implementing insurance exchanges.
Notable Legal, Constitutional, or Political Implications
- The repeal targets statutory changes from a reconciliation process, potentially affecting ongoing implementation of health programs without altering constitutional frameworks.
- Amendments to the tax code may require updated guidance from federal agencies and could face challenges in tax administration or judicial review related to subsidy calculations.
- As a bill referred to the Committees on Ways and Means and Energy and Commerce, it intersects with both tax and health policy jurisdictions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (141)
Rep. Tonko, Paul [D-NY-20], Rep. Mullin, Kevin [D-CA-15], Rep. Simon, Lateefah [D-CA-12], Rep. Menendez, Robert [D-NJ-8], Rep. Larson, John B. [D-CT-1], Rep. Castor, Kathy [D-FL-14], Rep. Clarke, Yvette D. [D-NY-9], Rep. McClellan, Jennifer L. [D-VA-4], Rep. DelBene, Suzan K. [D-WA-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Landsman, Greg [D-OH-1], Rep. Chu, Judy [D-CA-28], Rep. Ruiz, Raul [D-CA-25], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Mannion, John W. [D-NY-22], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Goldman, Daniel S. [D-NY-10], Rep. Horsford, Steven [D-NV-4], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Brownley, Julia [D-CA-26], Rep. Larsen, Rick [D-WA-2], Rep. Fields, Cleo [D-LA-6], Rep. Quigley, Mike [D-IL-5], Rep. Matsui, Doris O. [D-CA-7], Rep. Costa, Jim [D-CA-21], Rep. Sherman, Brad [D-CA-32], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Morrison, Kelly [D-MN-3], Rep. Nadler, Jerrold [D-NY-12], Rep. Davis, Danny K. [D-IL-7], Rep. Torres, Ritchie [D-NY-15], Rep. Budzinski, Nikki [D-IL-13], Rep. McBride, Sarah [D-DE-At Large], Rep. Gottheimer, Josh [D-NJ-5], Rep. Ansari, Yassamin [D-AZ-3], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Carter, Troy A. [D-LA-2], Rep. Cohen, Steve [D-TN-9], Rep. Liccardo, Sam T. [D-CA-16], Rep. Kelly, Robin L. [D-IL-2], Rep. Craig, Angie [D-MN-2], Rep. Vasquez, Gabe [D-NM-2], Rep. Subramanyam, Suhas [D-VA-10], Rep. Correa, J. Luis [D-CA-46], Rep. Omar, Ilhan [D-MN-5], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Friedman, Laura [D-CA-30], Rep. Trahan, Lori [D-MA-3], Rep. Stevens, Haley M. [D-MI-11], Rep. Randall, Emily [D-WA-6] and 91 more
Recent Actions
- 2025-08-01: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-08-01: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-08-01: Introduced in House
- 2025-08-01: Introduced in House
Bill Versions
- Protecting Health Care and Lowering Costs Act of 2025 — issued 2025-08-01 — PDF (3 pages)