Health Bill Extends Enhanced Premium Tax Credits Until 2030, Temporarily Raising Income Cap to 1000% FPL

If you’ve ever shopped for health insurance on the marketplace, you know how quickly premiums can eat up a budget. The Keep Healthcare Affordable Act is a short, sharp piece of legislation aimed squarely at keeping those monthly costs down by extending and expanding the enhanced premium tax credits (PTCs) that many people rely on.

The Clock Just Got Reset

First, let’s talk deadlines. These enhanced premium subsidies—the ones that made coverage significantly more affordable for millions of people—were set to expire at the end of 2025. This bill hits the snooze button on that deadline, pushing the expiration date back to January 1, 2030 (Sec. 2). For the average working family, this means four more years of certainty that their insurance premiums won't suddenly spike because the federal assistance dried up. It’s a major stability boost for both household budgets and the insurance markets themselves.

Breaking the Income Cap

The second, and perhaps most interesting, change is how the bill deals with higher earners. Currently, if your household income exceeds 400% of the federal poverty line (FPL), you generally lose eligibility for premium tax credits. This bill temporarily changes that rule. For tax years beginning after December 31, 2025, and before January 1, 2030, the maximum income percentage for eligibility is dramatically increased from 400% to 1000% of the FPL (Sec. 2).

What does 1000% FPL look like in real life? While the specific dollar amount changes every year, it essentially removes the income cap for receiving some level of subsidy for four years. Imagine you’re a mid-career professional or a small business owner who makes a decent living—say, $150,000 to $200,000 annually—but you live in a high-cost-of-living area where a bronze-level plan still costs $2,500 a month. Under the current rules, you’re likely on your own. Under this bill, you would potentially qualify for a credit because the rule preventing higher-income taxpayers from receiving assistance is essentially suspended for that four-year window.

The Trade-Off: Who Pays?

This expansion is great news for those struggling with high premiums, but it’s important to note the financial mechanics. Premium tax credits are subsidies paid by the federal government. Expanding eligibility to higher-income brackets and extending the program for four years means a significant increase in federal spending. While the bill provides immediate relief to consumers, the cost is borne by the general taxpayer pool. It’s a classic policy trade-off: expanded access and affordability now, financed by increased government outlay.

In short, the Keep Healthcare Affordable Act isn't rewriting the rules of healthcare, but it is providing a crucial financial bridge. It ensures that the current system of premium assistance continues for four more years, and, perhaps more significantly, it opens the door to subsidies for a much wider range of middle and upper-middle-class households who have previously been priced out of assistance.