S. 3385: Lower Health Care Costs Act

Introduced Dec 8, 20250 cosponsors

Sponsor

Charles Schumer

Charles Schumer

Democrat · NY

Bill Progress

IntroducedDec 8
Committee 
Pass Senate 
Pass House 
Signed 
Law 

Latest Action · Dec 11, 2025

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)

What’s In S. 3385

Why it matters

If this passes, people who buy their own insurance through the exchanges would keep getting larger federal subsidies, which means lower monthly premiums and fewer middle-income households getting priced out of coverage. The winners are consumers, insurers, and states trying to keep marketplace enrollment stable; the losers, politically and fiscally, are deficit hawks and Republicans who see the richer credits as another expensive Obamacare expansion embedded in the tax code.

S. 3385 Common Questions

Can I still get ACA premium tax credits after 2025 under this bill?

Yes. Under the Lower Health Care Costs Act, the enhanced premium tax credit rules are extended through 2028, applying to years before January 1, 2029 (Section 2(a)).

Can people making more than 400% of the poverty level still get marketplace subsidies through 2028?

Yes. Under the Lower Health Care Costs Act, taxpayers with household income above 400% of the poverty line could keep qualifying for the credit through 2028 (Section 2(b)).

How long would the enhanced ACA subsidies be extended in S. 3385?

S. 3385 extends the enhanced premium assistance period from through 2025 to through 2028, with eligibility lasting before January 1, 2029 (Section 2(a)).

Does this bill extend Obamacare subsidies for middle-income families above the income cap?

Yes. According to S. 3385 Section 2(b), the temporary rule allowing premium tax credits above the old 400% poverty-line cap is extended through 2028.

What tax years would the extended ACA premium tax credits apply to?

Under the Lower Health Care Costs Act, the changes apply to taxable years beginning after December 31, 2025 (Section 2(c)).

Is the ACA subsidy cliff still removed after 2025 in this bill?

Yes. Under the Lower Health Care Costs Act, the rule letting households above 400% of poverty receive credits continues through 2028, effectively keeping the subsidy cliff removed (Section 2(b)).

Does S. 3385 change the deadline from January 1, 2026 to January 1, 2029 for ACA subsidy eligibility?

Yes. According to S. 3385 Section 2(a), the enhanced premium assistance eligibility cutoff moves from before January 1, 2026 to before January 1, 2029.

Which taxpayers would benefit from the premium tax credit extension in the Lower Health Care Costs Act?

People buying exchange coverage, including taxpayers with household income over 400% of the poverty line, would remain eligible under the Lower Health Care Costs Act (Section 2(b)).

Can exchange enrollees keep the larger federal health insurance subsidies until 2028?

Yes. Under the Lower Health Care Costs Act, the increased premium assistance amounts for marketplace coverage are extended through 2028 (Section 2(a)).

Does the Lower Health Care Costs Act permanently extend the enhanced ACA tax credits?

No. Under the Lower Health Care Costs Act, the extension runs only through 2028, not permanently (Section 2(a)).

Based on S. 3385 bill text

S3385 Legislative Journey

3 actions

Action Taken

Dec 11, 2025

51-48

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)

Action Taken

Dec 9, 2025

Cloture motion on the motion to proceed to the measure presented in Senate. (CR S8567)

Introduced

Dec 8, 2025

8530-8531

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)

+2 more actions this day

About the Sponsor

Charles Schumer

Charles Schumer

Democrat, NY · 45 years in Congress

Committees: Rules and Administration, Senate Select Committee on Intelligence

View full profile →

S. 3385 Bill Text

To amend the Internal Revenue Code of 1986 to extend the enhancement of the health care premium tax credit.

Source: U.S. Government Publishing Office

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