# What the Capping Costs for Consumers Act Does

This bill makes health insurance cheaper for middle-income Americans by improving the financial help they get when buying coverage through the healthcare marketplace (the system where people shop for insurance if they don't get it through an employer). Right now, the government bases its financial assistance on the cost of a "silver" level plan, which is a mid-tier option. This bill changes that starting in 2026 to base assistance on a "gold" level plan instead, which is a better coverage tier that typically costs more but covers more of your medical expenses.

Here's what this means in practical terms: if you earn between roughly 150 and 400 percent of the poverty line (which is around $20,000 to $53,000 for an individual in 2024), you'd get more help paying for your insurance premiums and out-of-pocket costs like deductibles and copays. For example, someone making 250 percent of the poverty line would see their insurance plan cover 85 percent of their medical costs instead of 70 percent. This means you'd pay less when you go to the doctor or get prescriptions filled. The bill also expands who qualifies for these better benefits—people earning up to 300 percent of the poverty line (instead of just 250 percent) would get enhanced help starting in 2026.

The bill funds these improvements by appropriating whatever money is needed from the federal treasury. Essentially, the government is committing to spend whatever it takes to make these benefits available. This affects anyone currently buying insurance through the marketplace or considering it, particularly working families and individuals who don't qualify for employer-sponsored coverage but earn too much to qualify for Medicaid.