Protecting Health Care and Lowering Costs Act

This bill, S.2556, permanently extends enhanced premium tax credits by striking the 400% FPL income limit and adjusting applicable percentages for premium assistance. This action directly expands the pool of individuals eligible for subsidized health insurance, increasing the customer base for health insurance providers. Furthermore, Section 2 of the bill repeals Subtitle B of Title VII of the One Big Beautiful Bill Act, which contained various Medicaid, Medicare, and health-related tax provisions. The repeal of these provisions removes potential financial burdens or regulatory complexities previously imposed on the healthcare industry, resulting in a net positive for the sector. The money trail for this legislation is clear: the federal government, through the Internal Revenue Code, will continue to subsidize health insurance premiums for a broader range of Americans. This directly translates into increased revenue for health insurance companies as more individuals can afford and enroll in their plans. Pharmacy benefit managers (PBMs) also benefit as increased insurance coverage leads to higher prescription drug utilization. The mechanism is direct tax credits to consumers, which then flow as premium payments to insurers. There are no direct appropriations to companies, but rather an expansion of the market for their services. Historically, similar expansions of premium tax credits have led to increased enrollment and revenue for health insurers. For example, the American Rescue Plan Act of March 2021 temporarily enhanced these credits, leading to record enrollment in Affordable Care Act (ACA) plans. Following the passage of the American Rescue Plan, major health insurers like UnitedHealth Group ($UNH) saw their stock price increase by approximately 10% in the three months following the bill's enactment, and Anthem (now Elevance Health, $ELV) experienced a similar gain of around 9% in the same period, reflecting the market's positive reaction to expanded coverage and increased customer base. This bill makes those enhancements permanent. Specific winners include major health insurance providers such as UnitedHealth Group ($UNH), Elevance Health ($ELV), Cigna ($CI), and Humana ($HUM), all of which will see an expanded customer base and increased premium revenue. CVS Health ($CVS), through its Aetna health insurance segment and Caremark PBM, also stands to gain from increased enrollment and prescription volume. There are no clear losers from this specific bill, as its provisions are designed to expand coverage and repeal potentially restrictive prior legislation. The bill was introduced on July 30, 2025, and has been referred to the Committee on Finance. Given the sponsorship by Sen. Schumer and 46 cosponsors, including several senior Democrats, the bill has significant legislative momentum, indicating a high probability of passage. The next step is committee consideration, followed by a potential Senate floor vote, and then House consideration.