H.R. 8840
Fair Care Act of 2026
Sponsor: Bruce Westerman · 0 cosponsors
Official summary
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Text of the bill
I Modernization of health savings accounts
A Modernization of health savings accounts and contributions
B Assistance to health savings accounts
II Improving Private Health Insurance
A Maintaining Protections for Patients with Preexisting Conditions
B Expanding Coverage Options
C Improving Commercial Health Insurance
(a) Modification of applicable percentage. Section 36B(b)(3)(A) of the Internal Revenue Code of 1986 is amended to read as follows:
(A) Applicable percentage
(i) In general. The applicable percentage 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 percentage to the final percentage specified in such table for such income tier with respect to a taxpayer of the age involved: In the case of household income (expressed as a percent of the poverty line) within the following income tier:Up to Age 29Age 30–39Age 40–49Age 50–59Over Age 59 Initial %Final %Initial %Final %Initial %Final %Initial %Final %Initial %Final % Up to 100%0000000000 100%–133%2222222222 133%–150%34.334.334.334.334.3 150%–200%4.36.74.36.74.36.74.36.74.36.7 200%–250%6.76.76.77.66.78.36.78.36.78.3 250%–300%6.76.77.67.68.39.88.39.88.39.8 300%–400%6.777.689.8109.8109.810 400%–600%79810101510151015
(ii) Age determinations
(I) In general. For purposes of clause (i), the age of the taxpayer taken into account under clause (i) with respect to any taxable year is the age attained by such taxpayer before the close of such taxable year.
(II) Joint returns. In the case of a joint return, the age of the older spouse shall be taken into account under clause (i).
(iii) Indexing. In the case of any taxable year beginning after calendar year 2026, the initial and final percentages contained in clause (i) shall be adjusted to reflect—
(I) the excess (if any) of the rate of premium growth for the period beginning with calendar year 2013 and ending with calendar year 2025, over the rate of income growth for such period, and
(II) in addition to any adjustment under subclause (I), the excess (if any) of the rate of premium growth for calendar year 2025, over the rate of growth in the consumer price index for calendar year 2025.
(iv) Failsafe. Clause (iii)(II) shall apply 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 such calendar year.
(b) Expansion of eligibility. Section 36B of the Internal Revenue Code of 1986 is amended—
(1) in subsection (c)(1)(A), by striking 400 and inserting 600; and
(2) in subsection (f)(2)(B)(i), by striking 400 each place such reference appears and inserting 600 in each such place.
(c) Effective date. The amendment made by this section shall apply to taxable years beginning after December 31, 2026.
III Competition, Transparency and Accountability
A Provider and Insurer Competition
B Price Transparency
C Prescription Drug Competition and Innovation
D Prescription Drug and Pharmacy Benefit Manager Transparency
E Medicare and Medicaid Prescription Drug Reforms
F Medical Malpractice Reform
IV Medicare and Medicaid Reforms
A Medicaid Reforms
B Medicare Reforms
C Medicare Choice and Competition
D Telehealth Improvements and Expansion