Keep Healthcare Affordable Act
Summary
The "Keep Healthcare Affordable Act" (H.R. 6016) proposes amendments to the Internal Revenue Code of 1986, specifically targeting Section 36B, which deals with the premium tax credit. The bill aims to extend and modify the enhanced premium tax credit for healthcare coverage purchased through the Health Insurance Marketplace. The key provisions include extending the increased premium assistance amounts and modifying the rule for taxpayers whose household income exceeds specified amounts.
Expected Effects
If enacted, this bill would extend the enhanced premium tax credits through 2029. It would also allow individuals with household incomes exceeding 400% of the poverty line, but not exceeding 1000%, to be eligible for the premium tax credit after 2025. This could potentially lower healthcare costs for a broader range of individuals and families.
Potential Benefits
- Increased Healthcare Affordability: Extends enhanced premium tax credits, potentially lowering healthcare costs for many Americans.
- Expanded Eligibility: Allows higher-income individuals (up to 1000% of the poverty line) to qualify for premium tax credits.
- Financial Security: Provides greater financial security for families by reducing the burden of healthcare expenses.
- Reduced Uninsured Rate: Could lead to a decrease in the number of uninsured individuals as more people can afford coverage.
- Stability in Healthcare Markets: Provides stability to the individual health insurance market by ensuring continued access to affordable coverage.
Potential Disadvantages
- Increased Government Spending: Extending and expanding premium tax credits will likely increase government spending and potentially the national debt.
- Potential for Inefficiency: Tax credits may not be the most efficient way to deliver healthcare assistance.
- Complexity: The tax code becomes more complex with these modifications, potentially leading to confusion and errors.
- Uncertain Long-Term Effects: The long-term effects on healthcare markets and individual behavior are uncertain.
- Potential for Abuse: Expanded eligibility could create opportunities for fraud or abuse of the tax credit system.
Most Disadvantaged Areas:
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to promote access to healthcare. Article I, Section 8 grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. The expansion of tax credits for healthcare could be seen as an exercise of this power to improve public health and financial security.
However, some may argue that such extensive government involvement in healthcare could exceed the enumerated powers of Congress. The constitution does not explicitly mention healthcare, leaving room for interpretation regarding the federal government's role.
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).