H.R. 247: Health Care Affordability Act of 2025

Introduced Jan 9, 2025165 cosponsors

Sponsor

Lauren Underwood

Democrat · IL-14

Bill Progress

IntroducedJan 9

Committee

Pass House

Pass Senate

Signed

Law

Latest Action · Jan 9, 2025

1/3

Referred to the House Committee on Ways and Means.

ACA shoppers shouldn’t lose subsidies over one raise

3 min readLast updated July 7, 2026

Why it matters

Right now, marketplace help can disappear once your income goes above 400% of the federal poverty line. H.R. 247 would end that subsidy cliff and keep premium tax credits available on a sliding scale for 2026 and later coverage.

H.R. 247 removes the ACA rule that cuts off premium tax credit eligibility above 400% of the federal poverty line for people buying marketplace coverage.

Instead of losing all help at once, people above that income level could still qualify, with their share of the premium set under a sliding scale. The bill keeps the existing tax credit structure in place — it just widens who can use it.

The bill also rewrites how the premium percentage is calculated across income bands so assistance phases out more smoothly. It does not create a new insurance program or a new penalty.

If Congress passes it, the change would apply to tax years starting after December 31, 2025, which means 2026 coverage and later.

H.R. 247 Bill Summary

What H.R. 247 actually does.

The ACA subsidy cliff disappears

H.R. 247 removes the income cutoff that currently ends premium tax credit eligibility once household income goes above 400% of the federal poverty line.

Higher-income marketplace shoppers can still get help

People buying qualified marketplace plans would no longer be automatically excluded from premium tax credits just because their income is above the old cap.

Premium contributions stay on a sliding scale

The bill says the share you pay toward coverage should rise in a linear sliding scale across income tiers, rather than dropping assistance all at once at one threshold.

The bill keeps the existing ACA credit structure

This is not a new subsidy program. H.R. 247 expands eligibility for the current refundable premium tax credit tied to qualified health plans.

Changes start with 2026 tax years

The bill applies to tax years beginning after December 31, 2025, so the new rules would affect 2026 coverage and later filings.

Who benefits from H.R. 247?

People just above the old income cutoff

If your household income lands a little over 400% of the federal poverty line, you could still qualify for premium help instead of losing it all at once.

Families buying their own coverage on the ACA marketplace

Households without job-based insurance could see more predictable premiums because assistance would phase out gradually instead of ending at one line.

Older adults facing high sticker-price premiums

People in their 50s and early 60s who buy marketplace coverage often face the highest unsubsidized premiums, so keeping credits available above the old cap could matter most for them.

Anyone whose income changes year to year

If your pay fluctuates, H.R. 247 could reduce the risk that a modest raise suddenly wipes out your ACA help.

Who is affected by H.R. 247?

Marketplace enrollees across income levels

People buying qualified health plans would see a different subsidy formula, especially those above the old 400% cutoff.

Tax filers claiming premium tax credits

Your eligibility and credit amount could change because the bill expands access to the existing refundable ACA premium credit.

IRS and marketplace administrators

Federal and state systems would need to apply the new sliding-scale formula for plan years tied to tax years starting in 2026.

The federal budget

Because more households could qualify for premium tax credits, the bill would likely increase federal subsidy costs unless Congress adds offsets elsewhere.

Share this story

Tracking floor activity — no debate on H.R. 247 yet. Updates when a legislator speaks on the record.

HR247 Legislative Journey

1 actions

House: Committee Action

Jan 9, 2025

Referred to the House Committee on Ways and Means.

About the Sponsor

Lauren Underwood

Democrat, Illinois's 14th congressional district · 7 years in Congress

Committees: Appropriations

View full profile →

Cosponsors (165)

No new cosponsors in 182 days — momentum stalled

All 165 cosponsors are Democrats. Cosponsors represent 38 states: Alabama, Arizona, California, and 35 more.

165Democrats·38 states

Kathy Castor

Democrat · FL

Janice Schakowsky

Democrat · IL

Diana DeGette

Democrat · CO

Raúl Grijalva

Democrat · AZ

Brittany Pettersen

Democrat · CO

Nanette Barragán

Democrat · CA

Jimmy Panetta

Democrat · CA

Steny Hoyer

Democrat · MD

Eleanor Norton

Democrat · DC

Dina Titus

Democrat · NV

Joseph Morelle

Democrat · NY

Paul Tonko

Democrat · NY

Cosponsor Coverage Map

Committee Sponsors

Ways and Means Committee

19D26R

|13 signed32 not yet

13 of 45 committee members cosponsored

6 Democrats across this committee haven't cosponsored yet. Mobilize their constituents

See other bills in the Hemicycle

What laws does H.R. 247 change?

2 changes

Full Text

Sections Amended

Section 36B(c) of such Code

striking subparagraph (E)

Section 36B(c) of such Code

striking subparagraph (F)

H.R. 247 Quick Facts

Cosponsors

165

+160 more

Committee: Ways and Means
Chamber: House
Policy: Taxation
Introduced: Jan 9, 2025

Referred to the House Committee on Ways and Means.

Jan 9, 2025

Constituent Resources

Find your legislators on H.R. 247

Get notified when this bill moves

Official Sources

H.R. 247 on Congress.gov

Official Congress.gov page for the Health Care Affordability Act of 2025, with status, text, and cosponsors.

26 U.S. Code § 36B — Refundable credit for coverage under a qualified health plan

The bill directly amends Internal Revenue Code section 36B, which governs the ACA premium tax credit.

HealthCare.gov — Premium tax credits

Official marketplace explanation of how premium tax credits lower monthly ACA premiums for eligible enrollees.

HealthCare.gov — Health insurance marketplace

Official overview of the ACA marketplace where qualified health plans are purchased and premium tax credits are used.

IRS — Affordable Care Act: Individuals and Families

IRS hub for ACA tax rules affecting individuals, including premium tax credit administration and filing.

IRS — Form 8962, Premium Tax Credit

Official IRS page for the form taxpayers use to calculate and reconcile the premium tax credit referenced in the bill.

CBO Cost Estimates search

Congressional Budget Office search page to check whether an official cost estimate has been published for H.R. 247.

Take Action

Mobilize constituents on H.R. 247

See how Legisletter works

H.R. 247 Common Questions

What does H.R. 247 do?

H.R. 247 ends the ACA income cutoff that can block premium tax credits once your household income goes above 400% of the federal poverty line.

If your income is over 400% of poverty, can you still get ACA subsidies?

Under H.R. 247, yes. The bill lets people above that income level keep qualifying for marketplace premium tax credits instead of being cut off entirely.

When would H.R. 247 take effect?

The bill says the change would apply to tax years beginning after December 31, 2025, so it would affect 2026 coverage and later.

Does H.R. 247 create a new ACA subsidy?

No. It expands eligibility for the existing ACA premium tax credit rather than creating a separate new benefit.

How would subsidies work above the old income cap?

H.R. 247 says premium contributions would rise on a sliding scale across income tiers, so help phases out more smoothly instead of ending at one line.