U.S. Sen. Susan Collins (R-Maine) is partnering with Sen. Bernie Moreno (R-Ohio) on new legislation aimed at reshaping Affordable Care Act subsidies by extending enhanced tax credits for two years while imposing new limits on who qualifies for federal assistance.
The Consumer Affordability and Responsibility Enhancement (CARE) Act would continue the boosted ACA premium tax credits but gradually phase out the COVID-era enhancements to avoid sudden changes in coverage. The bill would also place an income cap on subsidy eligibility and eliminate zero-premium health plans by requiring a minimum monthly payment of $25.
“Families in Maine and across the country are struggling with the high cost of health care,” Collins said in announcing the bill, arguing the measure strikes a balance between affordability and responsible spending. She said the legislation would help prevent sharp premium increases while ensuring taxpayer-funded subsidies reach those who genuinely need them.
The effort is led by Moreno, who has pushed for tightening ACA subsidy rules as part of broader reforms to federal health spending.
