S. 3385: Lower Health Care Costs Act

This bill, known as the Lower Health Care Costs Act, aims to modify the Internal Revenue Code primarily concerning health care premium tax credits. Here’s a summary of its key provisions:

Extension of Premium Assistance

The bill proposes to extend the rules that enhance the health care premium tax credit through the year 2028. Specifically:

• The law currently allows increased premium assistance amounts through 2025, but this bill would extend that deadline to 2028.

Eligibility for Higher Income Taxpayers

It also intends to extend eligibility for the premium tax credit to individuals and families whose household incomes exceed 400 percent of the poverty line. This provision will also be extended through 2028, allowing more individuals to receive tax credits for health insurance premiums.

Effective Date

The changes instituted by this bill would apply to taxable years that begin after December 31, 2025. This means that any benefits from the extended credits would not take effect until 2026 or later.

Summary of Impact

In essence, the Lower Health Care Costs Act seeks to provide continued financial assistance for health insurance premiums to a broader range of individuals up until 2028, particularly benefiting those with higher incomes who have previously been ineligible for such assistance.

Relevant Companies

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