SMOOTH Payments Act
- Bill Number
- H.R. 9455
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2026-06-25: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-09T13:54:23Z
AI-Generated Summary
Purpose The legislation aims to limit access to the premium tax credit under the Internal Revenue Code for individuals enrolled in certain qualified health plans, requiring health insurance issuers to offer at least one plan that allows enrollees to pay cost-sharing amounts monthly rather than at the time services are received.
Key Provisions
- Amends Section 36B(c)(3)(A)(i) of the Internal Revenue Code of 1986 to expand the exclusion from "qualified health plan" status for premium tax credit eligibility.
- Excludes plans from any issuer that does not offer at least one qualified health plan providing enrollees the option to:
- Pay $0 cost-sharing at the time an item or service is received.
- Pay cost-sharing in monthly amounts, capped similarly to rules in Section 1860D-2(b)(2)(E) of the Social Security Act or as prescribed by the Secretary of Health and Human Services.
- Retains the existing exclusion for catastrophic plans under Section 1302(e) of the Affordable Care Act.
- Applies the changes to taxable years beginning after December 31, 2026.
Significant Changes to Existing Law
- Modifies the definition of eligible plans for the premium tax credit by adding a new requirement tied to issuers' plan offerings.
- Introduces a condition on monthly cost-sharing payment options, which was not previously part of premium tax credit eligibility rules.
Potential Impacts
- Health insurance issuers may need to redesign or add plans to maintain eligibility for tax credits on their other offerings.
- Individuals purchasing coverage through the exchanges could face restricted access to the premium tax credit unless their chosen issuer meets the new criteria.
- The Department of Health and Human Services may issue rules on payment caps, potentially affecting plan administration and out-of-pocket cost predictability for enrollees.
Main Stakeholders Affected
- Health insurance issuers offering qualified health plans.
- Individuals eligible for premium tax credits under the Affordable Care Act.
- Federal agencies including the Internal Revenue Service and Department of Health and Human Services.
Notable Legal, Constitutional, or Political Implications
- The bill operates through amendments to the tax code and does not appear to raise direct constitutional concerns in the text itself.
- It ties tax credit eligibility to specific plan design features, which could influence market competition among issuers without altering core Affordable Care Act structures.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-25: Referred to the House Committee on Ways and Means.
- 2026-06-25: Introduced in House
- 2026-06-25: Introduced in House
Bill Versions
- Simplified Medical Out-of-pocket Obligations Through Hassle-free Payments Act — issued 2026-06-25 — PDF (3 pages)