Protecting enrollees from surprise premium bills

(a) In general Section 36B(f)(2) of the Internal Revenue Code of 1986, as amended by Public Law 119–21, is amended— (1) by striking If the advanced payments and inserting the following: (A) In general If the advanced payments, and (2) by adding at the end the following new subparagraph: (B) Limitation on increase (i) In general In the case of a taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed the applicable dollar amount determined in accordance with the following table (one-half of such amount in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year): If the household income (expressed as a percentage of the poverty line) is: The applicable dollar amount is: Less than 200% $600 At least 200% but less than 300% $1,500 At least 300% but less than 400% $2,500. (ii) Indexing of amount In the case of any calendar year beginning after 2014, each of the dollar amounts in the table contained under clause (i) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2013 for calendar year 2016 in subparagraph (A)(ii) thereof. If the amount of any increase under clause (i) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.. (b) Conforming amendment Section 35(g)(12)(B)(ii) of such Code is amended by striking the amount determined under clause (i) shall be substituted for the amount determined under section 36B(f)(2) and inserting then section 36B(f)(2)(B) shall be applied by substituting the amount determined under clause (i) for the amount determined under section 36(f)(2)(A). (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.