Health Care Affordability Act of 2025

This bill increases healthcare affordability for low- and middle-income people by expanding eligibility for premium tax credits under the Affordable Care Act. It removes the previous 400% of poverty level cap for subsidy eligibility and replaces it with a new sliding scale based on income tiers, ranging from 0% to 8.5% of household income for coverage costs. The scale adjusts linearly across income levels, with households earning 300-400% of poverty paying 6.0%-8.5% of income (up from the prior fixed 400% cap), while lower-income households pay progressively less. These changes apply to tax years beginning after December 31, 2025, directly affecting individuals purchasing health insurance through marketplace plans.