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Easy Enrollment in Health Care Act

Source: Congress.gov  ·  13,003 words in original text
This bill creates a system that lets people apply for health insurance through federal income tax returns. When filing taxes, people who don't have health insurance can consent to share tax information with health insurance programs to check if they qualify for free or low-cost coverage. If eligible and consent is given, the person gets automatically enrolled in a zero net premium plan (a plan with no monthly premium cost). ##
- Taxpayers without health insurance who file federal income tax returns - Family members of taxpayers who lack health insurance - State Medicaid programs - State Children's Health Insurance Programs (CHIP) - Health insurance exchanges (the marketplaces where people buy insurance) - Tax return preparers - The Internal Revenue Service - Department of Health and Human Services - State agencies administering insurance affordability programs ##
- The Secretary of the Treasury must establish a program by January 1, 2026, allowing uninsured taxpayers to consent to sharing tax information with insurance exchanges to check eligibility for free or low-cost health insurance (Sec. 3(a)) - Taxpayers can provide a supplemental form with additional information needed to determine eligibility, including state of residence, date of birth, employment status, and preferred contact methods, but the form cannot ask about citizenship, immigration status, or health status (Sec. 3(b)(3)) - Tax return preparers are not required to verify the accuracy of information submitted solely for this enrollment program (Sec. 3(c)(1)) - Exchanges receiving tax information must minimize the amount of additional paperwork needed and use data from reliable third-party sources to confirm eligibility (Sec. 4(a)) - If an uninsured person qualifies for Medicaid or CHIP, the state must automatically enroll them unless the person must pay a premium they have not agreed to pay (Sec. 4(b)(2)(A)) - If a person does not qualify for Medicaid or CHIP but qualifies for exchange coverage, the exchange must select a default zero net premium health plan and enroll the person unless they choose a different plan or opt out during a special enrollment period (Sec. 4(c)(2)) - States must allow Medicaid eligibility determinations for people applying in January through April based on income from the previous calendar year (Sec. 5(a)) - Insurance affordability programs can access employment and wage information from the National Directory of New Hires to verify eligibility (Sec. 6(a)) ##
If this becomes law, uninsured people filing federal income taxes will have a new option to apply for health insurance without filling out separate applications. Tax filers can consent to let the IRS share their tax information with health insurance programs. Exchanges and state Medicaid/CHIP programs will automatically enroll eligible people in zero net premium plans unless the person declines. States will be required to allow Medicaid eligibility determinations based on previous year income for early calendar year applicants. Insurance programs will have new access to employment data from the National Directory of New Hires to verify eligibility. The Treasury and health agencies will develop systems to securely transfer tax information to insurance exchanges. ##
- **Insurance affordability program**: Medicaid, CHIP, health plans sold through insurance exchanges (including premium tax credits and cost-sharing reductions), state basic health programs, and other federal, state, or local programs that help pay for health insurance based on income - **Minimum essential coverage**: Health insurance that meets minimum federal standards - **Zero net premium**: A health plan with a monthly premium cost of $0.00 after all available subsidies (discounts and tax credits) are applied - **Net premium**: The amount a person must pay for health insurance after all available help from government programs is subtracted - **Household member**: A taxpayer, their spouse, and any person the taxpayer claims as a dependent - **Relevant return information**: Tax return information that may help determine eligibility for health insurance programs or help enroll someone in coverage - **Single, streamlined application**: The standard health insurance application form used by insurance exchanges - **Modified adjusted gross income**: A calculation of income used to determine eligibility for health insurance help (defined in federal tax law) - **Applicable taxable year**: For coverage in January-May, the most recent tax year that ended at least 12 months before January 1 of the plan year; for other coverage months, the most recent tax year that ended before January 1 of the plan year ##
The program allowing tax-based enrollment must be established by January 1, 2026 (Sec. 3(a)). People can use this program starting with tax returns filed for taxable years beginning after December 31, 2024. Changes to income eligibility rules for Medicaid and CHIP take effect January 1, 2025 (Sec. 5(a)(3)). Changes to how exchanges determine eligibility for premium tax credits take effect January 1, 2026, and continue through December 31, 2032 (Sec. 5(b)(3)).
Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.