Improving Health Insurance Affordability Act of 2023

Subjects: Taxation

Summary:  <p><strong>Improving Health Insurance Affordability Act of 2023</strong></p> <p>This bill expands the eligibility of taxpayers for the refundable tax credit for coverage under a qualified health plan and increases cost-sharing subsidies under the Patient Protection and Affordable Care Act.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 8 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                  S. 8

 To amend the Internal Revenue Code of 1986 to expand eligibility for 
 the refundable credit for coverage under a qualified health plan, to 
    improve cost-sharing subsidies under the Patient Protection and 
              Affordable Care Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 23 (legislative day, January 3), 2023

Mrs. Shaheen (for herself, Mr. Blumenthal, Ms. Smith, Ms. Baldwin, Mr. 
 Kaine, Mr. Reed, Mr. Casey, Ms. Stabenow, Ms. Klobuchar, Mr. Cardin, 
    Ms. Hassan, Mr. Bennet, Ms. Cortez Masto, and Mrs. Gillibrand) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to expand eligibility for 
 the refundable credit for coverage under a qualified health plan, to 
    improve cost-sharing subsidies under the Patient Protection and 
              Affordable Care Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving Health Insurance 
Affordability Act of 2023''.

SEC. 2. INCREASE IN ELIGIBILITY FOR CREDIT.

    (a) In General.--Subparagraph (A) of section 36B(c)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``but does not 
exceed 400 percent''.
    (b) Applicable Percentages.--
            (1) In general.--Subparagraph (A) of section 36B(b)(3) of 
        the Internal Revenue Code of 1986 is amended to read as 
        follows:
                    ``(A) Applicable percentage.--The applicable 
                percentage for any taxable year shall be the percentage 
                such that the applicable percentage for any taxpayer 
                whose household income is within an income tier 
                specified in the following table shall increase, on a 
                sliding scale in a linear manner, from the initial 
                premium percentage to the final premium percentage 
                specified in such table for such income tier:


------------------------------------------------------------------------
                                                The initial   The final
 ``In the case of household income  (expressed    premium      premium
   as a percent of poverty line)  within the     percentage   percentage
            following income tier:                  is--         is--
------------------------------------------------------------------------
Up to 150 percent.............................            0            0
150 percent up to 200 percent.................            0          2.0
200 percent up to 250 percent.................          2.0          4.0
250 percent up to 300 percent.................          4.0          6.0
300 percent up to 400 percent.................          6.0          8.5
400 percent and up............................          8.5      8.5.''.
------------------------------------------------------------------------

            (2) Conforming amendments relating to affordability of 
        coverage.--
                    (A) Subparagraph (C) of section 36B(c)(2) of such 
                Code is amended by striking clause (iv).
                    (B) Paragraph (4) of section 36B(c) of such Code is 
                amended by striking subparagraph (F).
    (c) Limitation on Recapture.--Clause (i) of section 36B(f)(2)(B) of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``400 percent'' and inserting ``800 
        percent'';
            (2) by striking the period at the end of the last row of 
        the table; and
            (3) by adding at the end of the table the following new 
        rows:


 
 
------------------------------------------------------------------------
``At least 400 percent but less than 600 percent...........       $3,500
 At least 600 percent but less than 800 percent............   $4,500.''.
------------------------------------------------------------------------

    (d) Premium Cost Standard.--
            (1) In general.--The following provisions of section 36B of 
        the Internal Revenue Code of 1986 are each amended by striking 
        ``silver'' each place it appears and inserting ``gold'':
                    (A) Paragraphs (2)(B)(i), (3)(B), and (3)(C) of 
                subsection (b).
                    (B) The heading of subparagraph (B) of subsection 
                (b)(3).
                    (C) Subsection (c)(4)(C)(i)(I).
            (2) Conforming amendments to reduced cost-sharing.--Section 
        1402(b)(1) of the Patient Protection and Affordable Care Act 
        (42 U.S.C. 18071(b)(1)) is amended by striking ``silver'' and 
        inserting ``gold''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.

SEC. 3. ENHANCEMENTS FOR REDUCED COST-SHARING.

    (a) Modification of Amount.--
            (1) In general.--Section 1402(c)(2) of the Patient 
        Protection and Affordable Care Act (42 U.S.C. 18071(c)(2)) is 
        amended--
                    (A) by striking ``150 percent'' in subparagraph (A) 
                and inserting ``200 percent'',
                    (B) by striking ``94 percent'' in subparagraph (A) 
                and inserting ``95 percent'',
                    (C) by striking ``150 percent but not more than 200 
                percent'' in subparagraph (B) and inserting ``200 
                percent but not more than 300 percent'',
                    (D) by striking ``87 percent'' in subparagraph (B) 
                and inserting ``90 percent'',
                    (E) by striking ``200 percent'' in subparagraph (C) 
                and inserting ``300 percent'',
                    (F) by striking ``250 percent'' in subparagraph (C) 
                and inserting ``400 percent'', and
                    (G) by striking ``73 percent'' in subparagraph (C) 
                and inserting ``85 percent''.
            (2) Conforming amendment.--Clause (i) of section 
        1402(c)(1)(B) of such Act (42 U.S.C. 18071(c)(1)(B)) is amended 
        to read as follows:
                            ``(i) In general.--The Secretary shall 
                        ensure the reduction under this paragraph shall 
                        not result in an increase in the plan's share 
                        of the total allowed costs of benefits provided 
                        under the plan above--
                                    ``(I) 95 percent in the case of an 
                                eligible insured described in paragraph 
                                (2)(A);
                                    ``(II) 90 percent in the case of an 
                                eligible insured described in paragraph 
                                (2)(B); and
                                    ``(III) 85 percent in the case of 
                                an eligible insured described in 
                                paragraph (2)(C).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to plan years beginning after December 31, 2023.
    (b) Funding.--Section 1402 of the Patient Protection and Affordable 
Care Act (42 U.S.C. 18071) is amended by adding at the end the 
following new subsection:
    ``(g) Funding.--Out of any funds in the Treasury not otherwise 
appropriated, there are appropriated to the Secretary such sums as may 
be necessary for payments under this section.''.
                                 &lt;all&gt;
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