H.R.3007 - Medicare Protection Act of 2025 (119th Congress)
Summary
H.R.3007, the Medicare Protection Act of 2025, aims to amend Title XVIII of the Social Security Act. The bill excludes certain sales of a principal residence from income-related monthly adjustment amount (IRMAA) calculations under Medicare. This exclusion applies to sales occurring on or after January 1, 2025.
Expected Effects
The bill will likely reduce the Medicare premiums for some individuals who sell their primary residence. This is achieved by preventing the capital gains from such sales from being counted as income for the purpose of determining IRMAA. This could provide financial relief to seniors and other Medicare beneficiaries who experience a one-time increase in income due to selling their homes.
Potential Benefits
- Potentially lower Medicare premiums for some individuals selling their primary residence.
- Financial relief for seniors with a one-time income increase.
- Simplification of income calculations for Medicare purposes.
- May encourage seniors to downsize or relocate without fear of increased Medicare costs.
- Could free up housing stock for younger families.
Most Benefited Areas:
Potential Disadvantages
- Potential for abuse or manipulation of the system.
- Increased complexity in administering Medicare income calculations.
- May disproportionately benefit higher-income individuals with more valuable homes.
- Potential revenue loss for the Medicare program.
- The benefit is limited to those who sell their primary residence.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble). Congress has the power to enact laws that promote the general welfare of the United States. This bill seeks to provide financial relief to some Medicare beneficiaries, which could be considered promoting their welfare. The bill falls under the powers granted to Congress under Article I, Section 8, which allows Congress 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.
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).