Bipartisan Premium Tax Credit Extension Act
Summary
The Bipartisan Premium Tax Credit Extension Act aims to extend enhanced premium tax credits under the Internal Revenue Code. Specifically, it extends the increased premium assistance amounts and the rule allowing credits for taxpayers whose household income exceeds 400% of the poverty line. These provisions are currently set to expire, and this bill seeks to extend them through 2026, applying to taxable years beginning after December 31, 2025.
Expected Effects
The primary effect of this bill is to prevent a potential increase in healthcare costs for individuals and families who receive premium tax credits under the Affordable Care Act (ACA). By extending the enhanced credits, the bill maintains the current level of financial assistance for eligible individuals. This ensures continued access to affordable healthcare coverage for those who rely on these subsidies.
Potential Benefits
- Maintains affordable healthcare access for individuals and families receiving premium tax credits.
- Prevents a potential increase in healthcare premiums for eligible individuals.
- Provides financial stability for those with incomes exceeding 400% of the poverty line who rely on these credits.
- Reduces uncertainty in the healthcare market by extending the availability of premium assistance.
- Supports continued enrollment in health insurance plans through the ACA marketplace.
Potential Disadvantages
- Increases government spending and potentially contributes to the national debt.
- May create a continued reliance on government subsidies for healthcare.
- Could disincentivize market-based solutions for healthcare affordability.
- Potential for fraud and abuse in the premium tax credit system.
- May not address the underlying issues driving up healthcare costs.
Most Disadvantaged Areas:
Constitutional Alignment
This bill aligns with the general welfare clause of the US Constitution, as it aims to promote access to healthcare. 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. The extension of premium tax credits falls under the purview of 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).