Protecting Health Care and Lowering Costs Act
Key claim: The Protecting Health Care and Lowering Costs Act would permanently eliminate the 400% FPL income cap and lower applicable percentages for the premium tax credit, and repeal multiple Medicaid, Medicare, and health-related tax provisions enacted by the OBBBA.
Abstract
(S2556 · 119th Congress) Protecting Health Care and Lowering Costs Act This bill makes permanent temporary provisions that generally expand eligibility for and increase the amount of the premium tax credit. This bill also repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the One Big Beautiful Bill Act (OBBBA). Currently, eligible taxpayers may claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To qualify, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the maximum income limit is eliminated, which generally expands eligibility for the premium tax credit. Further, under current law, the amount of the premium tax credit is partially based on the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the applicable percentages are lowered and the adjustment of the applicable percentages for inflation is eliminated, which generally increases the amount of the premium tax credit. The bill permanently eliminates the 400% maximum income limit, lowers the applicable percentages, and eliminates the inflation adjustment for the applicable percentages. Finally, the bill repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the OBBBA, including certain Medicare and Medicare eligibility and verification requirements, the reduced window for retroactive Medicaid coverage, and premium tax credit verification requirements. Latest action (2025-07-30): Read twice and referred to the Committee on Finance. (text: CR S4908)
Why this matters
The bill would permanently codify the temporary ARPA/IRA expansions to the ACA premium tax credit — removing the 400% FPL subsidy cliff and reducing applicable percentages — shifting more of the cost of marketplace coverage from enrollees (especially middle-income households) to the federal government. It also proposes to unwind OBBBA-era tightening of PTC eligibility verification and various Medicaid/Medicare tax provisions, making it a significant reversal of recent reconciliation-era tax policy on health coverage. Status is introduced legislation, not enacted.