S 2824119th CongressIn Committee

A bill to amend the Internal Revenue Code of 1986 to extend the temporary enhanced premium credits.

Introduced: Sep 16, 2025

Sponsor: Sen. Murkowski, Lisa [R-AK] (R-Alaska)

Economy & TaxesHealthcare

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill would extend the temporary enhanced premium tax credits (subsidies) available to people purchasing health insurance through the ACA Marketplace. Specifically, it lengthens the period during which these enhanced credits are in effect. The change shifts the expiration dates from January 1, 2026 to January 1, 2028 for most enrollees, and from 2025 to 2027 for households with income above 400% of the federal poverty line. The extensions apply to taxable years beginning after December 31, 2025, effectively covering 2026 onward. The bill keeps the basic framework of premium credits in place but adds a temporary extension so subsidies remain more generous for several additional years.

Key Points

1Extends the enhanced premium credits in IRC 36B(b)(3)(A)(iii) to January 1, 2028 (from January 1, 2026).
2Extends the enhanced treatment for higher-income households above 400% of the poverty line in IRC 36B(c)(1)(E) to January 1, 2028 (from January 1, 2026) and updates the heading to reflect 2027.
3Updates the applicable year references in the statute’s heading from 2025 to 2027.
4Effective for taxable years beginning after December 31, 2025, meaning the extensions apply starting with 2026 filings.
5The bill does not create new subsidies beyond extending the temporary enhancements; it preserves and prolongs existing enhanced subsidy levels for an additional period.

Impact Areas

Primary group/area affected: Individuals and families purchasing ACA Marketplace plans who would benefit from reduced premiums due to enhanced premium credits, including those in the 0–400% FPL range and those above 400% FPL under the high-income provision.Secondary group/area affected: States running or administering ACA marketplace exchanges, health insurers issuing marketplace plans, and taxpayers claiming premium credits.Additional impacts: Federal budget/outlays will be affected due to the extended subsidies; health coverage affordability in the Marketplace is likely to improve for a longer period, potentially influencing enrollment and plan choice. Implementation details would hinge on ongoing congressional appropriations and any accompanying budgetary scoring.

Generated by gpt-5-nano on Oct 2, 2025