What This Bill Does · Plain English
Summary · Congress.gov
Lower Health Care Costs Act This bill extends for three years, through 2028, temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit. Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, 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 ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit. Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit. The bill extends for three years, through 2028, the elimination of the 400% maximum income limit, the lower appli
Action Timeline
2025-12-11
Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 51 - 48. Record Vote Number: 644. (CR S8654-8655)
2025-12-09
Cloture motion on the motion to proceed to the measure presented in Senate. (CR S8567)
2025-12-09
Motion to proceed to consideration of measure made in Senate. (CR S8567)
2025-12-08
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 284.
2025-12-08
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time. (Legislative Day December 4, 2025). (text: CR S8530-8531)
2025-12-08
Introduced in Senate
Frequently Asked Questions
Did S.3385 pass?
S.3385 is still alive. Current stage: FLOOR. Pass likelihood: pending.
What does S.3385 do?
Lower Health Care Costs Act This bill extends for three years, through 2028, temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit. Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after …
Who sponsored S.3385?
S.3385 was sponsored by Charles E. Schumer (D-New York).
Full Bill Text
119 S3385 PCS: Lower Health Care Costs Act U.S. Senate 2025-12-08 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 Calendar No. 284 119th CONGRESS 1st Session S. 3385 IN THE SENATE OF THE UNITED STATES December 8 (legislative day, December 4), 2025 Mr. Schumer introduced the following bill; which was read the first time December 8. 2025 Read the second time and placed on the calendar A BILL To amend the Internal Revenue Code of 1986 to extend the enhancement of the health care premium tax credit. 1. Short title This Act may be cited as the Lower Health Care Costs Act . 2. Extension of enhancement of health care premium tax credit (a) Extension of rules to increase premium assistance amounts Clause (iii) of section 36B(b)(3)(A) of the Internal Revenue Code of 1986 is amended— (1) in the heading, by striking through 2025 and inserting through 2028 , and (2) in the matter preceding subclause (I), by striking before January 1, 2026 and inserting before January 1, 2029 . (b) Extension of rule to allow credit to taxpayers whose household income exceeds 400 percent of poverty line Subparagraph (E) of section 36B(c)(1) of the Internal Revenue Code of 1986 is amended— (1) in the heading, by striking through 2025 and inserting through 2028 , and (2) by striking before January 1, 2026 and inserting before January 1, 2029 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025. December 8. 2025 Read the second time and placed on the calendar
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