Lower Health Care Costs Act
Summary
The Lower Health Care Costs Act (S. 3385) proposes to amend the Internal Revenue Code of 1986 to extend enhancements to the health care premium tax credit. Specifically, it extends the increased premium assistance amounts and the rule allowing the credit to taxpayers whose household income exceeds 400 percent of the poverty line. These extensions would be in effect through 2028, applying to taxable years beginning after December 31, 2025.
Expected Effects
This act, if passed, would continue the current level of health care premium tax credits for an additional three years. This would prevent a potential increase in health insurance premiums for millions of Americans who receive subsidies under the Affordable Care Act. The extension aims to maintain affordable health care access for eligible individuals and families.
Potential Benefits
- Extends health care premium tax credits, preventing potential premium increases.
- Maintains affordable health care access for individuals and families with incomes up to and exceeding 400% of the poverty line.
- Provides financial stability for those relying on premium assistance to afford health insurance.
- Could lead to improved health outcomes due to continued access to care.
- Reduces financial strain on lower and middle-income households.
Potential Disadvantages
- Increases government spending and potentially contributes to the national debt.
- May not address the underlying issues driving up health care costs.
- Could create a dependency on government subsidies for health insurance.
- Does not expand coverage to those currently ineligible for subsidies.
- Potential for fraud and abuse in the premium tax credit system.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the US Constitution (Preamble), which allows Congress to enact laws that promote the well-being of the population. Article I, Section 8 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. This bill utilizes the tax code to provide healthcare subsidies, which falls under this power. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).