The Treasury Department and the IRS published a proposed rule on Wednesday, October 14, to implement changes to the premium tax credit (PTC), the refundable credit that helps pay for health insurance purchased through the Health Insurance Marketplace, also known as Obamacare or HealthCare.gov. The rules implement provisions of the 2025 tax cut law, the Working Families Tax Cuts. More details are available in the IRS announcement.
Why it matters: The measure could affect about 15.6 million people enrolled in the Marketplace, including 13.5 million who could claim the credit. In families with immigrants, some members who are lawfully present could be excluded from the subsidy calculation starting in 2027. For those receiving monthly subsidies, new verification requirements apply, and beginning in 2026, there is no longer a cap on repaying excess subsidies.
This is a proposal, not a final rule. Comments are accepted for 45 days after publication in the Federal Register, through regulations.gov under reference REG-101576-26. A public telephone hearing is scheduled for December 8, 2026, at 10 a.m. Eastern Time. The Department of Health and Human Services (HHS) is expected to issue parallel rules governing Marketplace procedures.
