Keep Healthcare Affordable Act

Bill Number

H.R. 6016

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-11-10: Referred to the House Committee on Ways and Means.

Last Updated

2025-11-20T17:49:22Z

AI-Generated Summary

Purpose

The "Keep Healthcare Affordable Act" (H.R. 6016) aims to make health insurance more affordable for more Americans by extending and expanding a tax credit that helps cover premiums for health coverage purchased through government marketplaces (like those established under the Affordable Care Act, or ACA). This credit subsidizes costs for individuals and families based on their income.

Key Provisions

• Extension of Enhanced Premium Assistance: The bill extends rules that increase the amount of premium tax credits available through 2029 (previously set to expire after 2025). This applies to the premium tax credit under Section 36B of the Internal Revenue Code (IRC), which reduces the cost of health insurance premiums for eligible taxpayers.
• Expansion of Eligibility for Higher-Income Households:
• For tax years from 2026 to 2029, the credit is available to households with incomes up to 1,000% of the federal poverty level (FPL), compared to the current limit of 400% of FPL.
• Before 2026, the existing 400% FPL cap remains in place.
• Effective Date: Changes apply to tax years beginning after December 31, 2025.

Significant Changes to Existing Law

• Prolongs Temporary Enhancements: The enhanced premium tax credit, originally expanded under the American Rescue Plan Act of 2021 to help during the COVID-19 pandemic, was scheduled to end after 2025. This bill pushes that deadline to 2029.
• Removes Income Barrier: By raising the income eligibility threshold from 400% to 1,000% of FPL after 2025, the bill effectively eliminates the previous cap on subsidies for higher earners, allowing them to receive sliding-scale assistance (where the subsidy amount decreases as income rises, but does not cut off entirely).
• These amendments modify IRC Section 36B, which governs how the premium tax credit is calculated based on household income relative to the FPL (a measure of poverty used to determine eligibility for various programs).

Potential Impacts

• On Citizens: More individuals and families, especially those with moderate to higher incomes (up to about $300,000 for a family of four, depending on location and FPL adjustments), could qualify for subsidies, potentially lowering out-of-pocket health insurance costs and increasing enrollment in marketplace plans. This may reduce uninsured rates and improve access to coverage.
• On Government Agencies: The Internal Revenue Service (IRS) will administer the extended and modified credits through tax returns and advance payments. The Department of Health and Human Services (HHS) may see increased enrollment in ACA marketplaces, affecting program operations. Overall, this could raise federal spending on subsidies (estimated in billions annually, though not specified in the bill), impacting the federal budget.
• On International Relations: No direct impacts, as the bill focuses on domestic tax and health policy.

Main Stakeholders Affected

• Taxpayers and Families: Primarily middle- and upper-middle-income households buying insurance on ACA marketplaces, who will benefit from extended and expanded subsidies.
• Health Insurers and Providers: Increased enrollment could boost demand for plans and services.
• Low-Income Individuals: Indirect benefits through sustained enhancements to the overall ACA subsidy structure.
• Government Entities: IRS for tax credit processing; HHS for marketplace oversight; Congress and taxpayers funding the program.

Notable Legal, Constitutional, or Political Implications

• Legal: Builds directly on the ACA framework without altering its core structure, ensuring continuity in federal tax incentives for health coverage. No challenges to constitutionality are evident, as it amends existing tax code provisions upheld by courts.
• Constitutional: Relies on Congress's taxing and spending powers under Article I, Section 8, which have been used for similar health subsidies.
• Political: Could spark debate over federal healthcare spending and ACA expansions, with supporters viewing it as a step toward affordability and opponents potentially criticizing it as an unfunded expansion increasing deficits. As an introduced bill in the 119th Congress (introduced November 10, 2025, by Rep. Schneider and referred to the House Ways and Means Committee), its passage would require bipartisan support in a divided Congress.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Schneider, Bradley Scott [D-IL-10]

Cosponsors (3)

Rep. McDonald Rivet, Kristen [D-MI-8], Rep. Panetta, Jimmy [D-CA-19], Rep. Bell, Wesley [D-MO-1]

Recent Actions

• 2025-11-10: Referred to the House Committee on Ways and Means.
• 2025-11-10: Introduced in House
• 2025-11-10: Introduced in House

Bill Versions

• Keep Healthcare Affordable Act — issued 2025-11-10 — PDF (2 pages)