What This Bill Does · Plain English
Summary · Congress.gov
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, Me
Action Timeline
2025-07-30
Read twice and referred to the Committee on Finance. (text: CR S4908)
2025-07-30
Introduced in Senate
Frequently Asked Questions
Did S.2556 pass?
S.2556 is still alive. Current stage: COMMITTEE. Pass likelihood: pending.
What does S.2556 do?
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, ma…
Who sponsored S.2556?
S.2556 was sponsored by Charles E. Schumer (D-New York).
Full Bill Text
119 S2556 IS: Protecting Health Care and Lowering Costs Act U.S. Senate 2025-07-30 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 1st Session S. 2556 IN THE SENATE OF THE UNITED STATES July 30, 2025 Mr. Schumer (for himself, Mr. Wyden , Mr. Merkley , Mrs. Shaheen , Ms. Hirono , Mr. Welch , Ms. Duckworth , Mr. Hickenlooper , Mr. King , Mr. Luján , Mr. Sanders , Mr. Reed , Mr. Van Hollen , Mr. Peters , Mr. Blumenthal , Mrs. Murray , Mr. Schatz , Mr. Whitehouse , Ms. Warren , Mr. Warner , Mrs. Gillibrand , Mr. Kaine , Mr. Schiff , Ms. Baldwin , Mr. Markey , Mr. Coons , Ms. Alsobrooks , Mr. Durbin , Mr. Padilla , Mr. Gallego , Ms. Rosen , Mr. Warnock , Ms. Smith , Mr. Kelly , Mr. Booker , Ms. Slotkin , Mr. Bennet , Mr. Kim , Ms. Cortez Masto , Ms. Cantwell , Ms. Klobuchar , Ms. Blunt Rochester , Mr. Heinrich , Mr. Fetterman , Mr. Ossoff , Ms. Hassan , and Mr. Murphy ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To repeal the changes made by the health subtitle of the One Big Beautiful Bill Act, and for other purposes. 1. Short title This Act may be cited as the Protecting Health Care and Lowering Costs Act . 2. Repeal of health subtitle changes Subtitle B of title VII of the Act titled An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14 ( Public Law 119–21 ) is repealed and any law or regulation referred to in such subtitle shall be applied as if such subtitle and the amendments made by such subtitle had not been enacted. 3. Permanent extension of enhanced tax credit (a) In general Subparagraph (A) of section 36B(c)(1) of the Internal Revenue Code of 1986 is amended by striking but does not exceed 400 percent . (b) Applicable percentages (1) In general Subparagraph (A) of section 36B(b)(3) of the Internal Revenue Code of 1986 is amended to read as follows: (A) Applicable percentage The applicable percentage for any taxable year shall be the percentage such that the applicable percentage for any taxpayer whose household income is within an income tier specified in the following table shall increase, on a sliding scale in a linear manner, from the initial premium percentage to the final premium percentage specified in such table for such income tier: In the case of household income (expressed as a percent of poverty line) within the following income tier: The initial premium percentage is— The final premium percentage is— Up to 150 percent 0 0 150 percent up to 200 percent 0 2.0 200 percent up to 250 percent 2.0 4.0 250 percent up to 300 percent 4.0 6.0 300 percent up to 400 percent 6.0 8.5 400 percent and higher 8.5 8.5. . (2) Conforming amendments relating to affordability of coverage (A) Paragraph (1) of section 36B(c) of such Code is amended by striking subparagraph (E). (B) Subparagraph (C) of section 36B(c)(2) of such Code is amended by striking clause (iv). (C) Paragraph (4) of section 36B(c) of such Code is amended by striking subparagraph (F). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
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