S. 2556 · Where this bill is now
In committee
Introduced in the Senate, Jul 30, 2025
What this bill does
In plain words · AI-written from the official summaryMakes health insurance credits permanent and broader
This bill makes permanent some temporary rules about health insurance premium tax credits—money that helps people pay for insurance bought through health exchanges. Right now, these expanded benefits are set to expire after 2025, but this bill would keep them going indefinitely. The bill also removes certain requirements related to Medicare, Medicaid, and verification of eligibility for these programs that were added by another law.
How it affects you
If you buy health insurance through an exchange and your household income is between the federal poverty level and four times that amount, this would affect you. You'd keep getting the expanded tax credits to help pay your premiums, with lower costs than the original rules would otherwise require after 2025. The changes to Medicare and Medicaid verification requirements and coverage windows would affect those programs' operations, though the summary doesn't detail how those changes specifically impact individuals.
Read the official summary (Introduced in Senate, Jul 30, 2025)
Protecting Health Care and Lowering Costs Act
This bill makes permanent temporary provisions that generally expand eligibility for and increase the amount of the premium tax credit. This bill also repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the One Big Beautiful Bill Act (OBBBA).
Currently, eligible taxpayers may claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To qualify, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the maximum income limit is eliminated, which generally expands eligibility for the premium tax credit.
Further, under current law, the amount of the premium tax credit is partially based on the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the applicable percentages are lowered and the adjustment of the applicable percentages for inflation is eliminated, which generally increases the amount of the premium tax credit.
The bill permanently eliminates the 400% maximum income limit, lowers the applicable percentages, and eliminates the inflation adjustment for the applicable percentages.
Finally, the bill repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the OBBBA, including
• certain Medicare and Medicare eligibility and verification requirements,
• the reduced window for retroactive Medicaid coverage, and
• premium tax credit verification requirements.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 2556
A BILL
Protecting Health Care and Lowering Costs Act
Sponsor: Sen. Charles E. Schumer (D-NY) · Introduced Jul 30, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jul 30, 2025: “Read twice and referred to the Committee on Finance. (text: CR S4908)”