To amend the Internal Revenue Code of 1986 to extend the temporary enhanced premium credits.
Summary
This bill, S. 2824, proposes to amend the Internal Revenue Code of 1986 to extend the temporary enhanced premium credits for health insurance. Specifically, it extends the availability of these credits through January 1, 2028, instead of the current expiration date of January 1, 2026. This extension applies to both the general premium credits and the credits for taxpayers whose household income exceeds 400 percent of the poverty line.
The bill aims to ensure continued access to affordable health insurance for individuals and families who rely on these premium credits. The changes would be effective for taxable years beginning after December 31, 2025.
The bill was introduced in the Senate by Ms. Murkowski and referred to the Committee on Finance.
Expected Effects
The primary effect of this bill would be to prolong the availability of enhanced premium tax credits for individuals and families purchasing health insurance through the Affordable Care Act (ACA) marketplaces. Without this extension, many individuals could face higher premiums or lose access to coverage altogether.
This extension would provide continued financial assistance, potentially stabilizing enrollment in the ACA marketplaces. It would delay the return to pre-enhanced credit levels, where premium costs were a greater barrier to entry for many.
Potential Benefits
- Continued access to affordable health insurance for low- and middle-income individuals and families.
- Reduced financial burden related to healthcare costs.
- Greater stability in the individual health insurance market.
- Prevention of coverage losses for those currently benefiting from the enhanced credits.
- Potential for improved health outcomes due to increased access to care.
Potential Disadvantages
- Increased government spending and potential impact on the national debt.
- Potential for continued reliance on government subsidies rather than market-based solutions.
- Possible disincentive for individuals to seek employer-sponsored health insurance.
- Complexity in the tax code due to the extension of temporary provisions.
- Risk of future debates and uncertainty regarding the long-term sustainability of the premium credits.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it aims to promote access to healthcare. 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.
Congress has the power to enact laws related to taxation and spending. The extension of tax credits falls under this purview. The bill does not appear to infringe on any specific individual rights or liberties protected by the Constitution or its amendments.
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).