HR 4872 Sec. 1001

 

SEC. 1001. AFFORDABILITY.

(a) PREMIUM TAX CREDITS.—Section 36B of the In ternal Revenue Code of 1986, as added by section 1401 of the Patient Protection and Affordable Care Act and amended by section 10105 of such Act, is amended—

(1) in subsection (b)(3)(A)—

(A) in clause (i), by striking ‘‘with respect to any taxpayer’’ and all that follows up to the

end period and inserting ‘‘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:

 

‘‘In the case of household income

(expressed as a percent of

poverty line) within the following

income tier:

The initial premium

percentage is—

The final premium

percentage is—

Up to 133%                                                                             2.0%                                       2.0%

133% up to 150%                                                                   3.0%                                       4.0%

150% up to 200%                                                                   4.0%                                        6.3%

200% up to 250%                                                                   6.3%                                        8.05%

250% up to 300%                                                                   8.05%                                      9.5%

300% up to 400%                                                                   9.5%                                        9.5%’’; and

(B) by striking clauses (ii) and (iii), and inserting the following:

‘‘(ii) INDEXING.—

‘‘(I) IN GENERAL.—Subject to subclause (II), in the case of taxable years beginning in any calendar year after 2014, the initial and final applicable percentages under clause (i) (as 8 in effect for the preceding calendar year after application of this clause) shall be adjusted to reflect the excess of the rate of premium growth for the preceding calendar year over the rate

of income growth for the preceding calendar year.

‘‘(II) ADDITIONAL ADJUST- MENT.—Except as provided in subclause (III), in the case of any calendar year after 2018, the percentages described in subclause (I) shall,

in addition to the adjustment under subclause (I), be adjusted to reflect the excess (if any) of the rate of premium growth estimated under subclause (I) for the preceding calendar year over the rate of growth in the consumer price index for the preceding calendar year.

‘‘(III) FAILSAFE.—Subclause (II) shall apply for any calendar year only if the aggregate amount of premium tax credits under this section and cost-sharing reductions under section

1402 of the Patient Protection and Affordable Care Act for the preceding calendar year exceeds an amount equal to 0.504 percent of the gross domestic product for the preceding

calendar year.’’; and

(2) in subsection (c)(2)(C)—

(A) by striking ‘‘9.8 percent’’ in clauses (i)(II) and (iv) and inserting ‘‘9.5 percent’’, and

(B) by striking ‘‘(b)(3)(A)(iii)’’ in clause (iv) and inserting ‘‘(b)(3)(A)(ii)’’.

 

(b) COST SHARING.—Section 1402(c) of the Patient Protection and Affordable Care Act is amended—

(1) in paragraph (1)(B)(i)—

(A) in subclause (I), by striking ‘‘90’’ and inserting ‘‘94’’;

(B) in subclause (II)—

(i) by striking ‘‘80’’ and inserting ‘‘87’’; and (ii) by striking ‘‘and’’; and

(C) by striking subclause (III) and inserting the following:

‘‘(III) 73 percent in the case of an eligible insured whose household income is more than 200 percent but not more than 250 percent of the poverty line for a family of the size involved; and

an eligible insured whose household income is more than 250 percent but not more than 400 percent of the poverty line for a family of the size involved.’’; and

(2) in paragraph (2)—

(A) in subparagraph (A)—

(i) by striking ‘‘90’’ and inserting ‘‘94’’; and

(ii) by striking ‘‘and’’;

(B) in subparagraph (B)—

(i) by striking ‘‘80’’ and inserting ‘‘87’’; and

(ii) by striking the period and inserting ‘‘; and’’; and

(C) by inserting after subparagraph (B) the following new subparagraph:

‘‘(C) in the case of an eligible insured whose household income is more than 200 percent but not more than 250 percent of the poverty line for a family of the size involved, increase the plan’s share of the total allowed costs of benefits provided under the plan to 73 percent of such costs.’’.

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