# Health Care Affordability Act of 2024

This bill makes health insurance more affordable for middle-income and higher-income Americans by expanding who qualifies for tax credits that help pay for health insurance premiums. Right now, the government provides tax credits to help people buy insurance through the health marketplace, but these credits phase out once someone's income reaches 400 percent of the federal poverty line. This bill removes that income cap entirely, meaning people earning above that threshold can now qualify for help paying their insurance premiums.

The bill also changes how much help people get based on their income. Instead of a fixed cutoff at 400 percent of poverty, it creates a sliding scale where people earning more money pay a slightly higher percentage of their income toward insurance premiums, but still receive some government assistance. For example, someone earning between 400 and higher income levels would pay 8.5 percent of their household income toward premiums, but the government would cover the rest of the cost. People earning less pay lower percentages—those making up to 150 percent of the poverty line pay nothing out of pocket, while those between 150 and 200 percent gradually pay up to 2 percent of their income.

The practical effect is that people who currently earn too much to qualify for any help buying insurance would now get some financial assistance. This particularly helps middle-class and upper-middle-class workers who don't get insurance through their employers and have to buy it on their own. The changes take effect for tax years beginning after December 31, 2025, meaning people would start seeing the benefits when they file their 2026 taxes or buy insurance in 2026.