Health Insurance Premium Fairness Act of 2025
Summary
The Health Insurance Premium Fairness Act of 2025 aims to amend the Internal Revenue Code of 1986. It seeks to incorporate certain Medicare premiums of household members when determining the health care insurance premiums tax credit. This bill was introduced in the House of Representatives on December 4, 2025, and referred to the Committee on Ways and Means.
Expected Effects
The primary effect of this bill would be to reduce the amount an applicable taxpayer pays for health insurance premiums tax credit. This reduction is tied to the aggregate amount of specified Medicare premiums paid by the taxpayer's household members. The changes would apply to coverage months beginning after December 31, 2025.
Potential Benefits
- Potentially lower healthcare costs for families with members on Medicare.
- Could provide financial relief to those struggling to afford both Medicare premiums and health insurance.
- May incentivize more people to obtain health insurance coverage.
- Simplifies the tax credit calculation process by including Medicare premiums.
- Addresses a potential inequity in the current system by recognizing Medicare costs.
Potential Disadvantages
- Increased complexity in tax credit calculations for the IRS.
- Potential for fraud or abuse in claiming Medicare premiums.
- May disproportionately benefit higher-income individuals who can afford supplemental Medicare coverage.
- Could lead to increased government spending on health insurance tax credits.
- The definition of 'household member' might create loopholes or unintended consequences.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare affordability. Specifically, the preamble states the Constitution is intended to "promote the general Welfare". Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill falls under Congress's power to tax and spend for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).