H.R. 10692 — Restoring Essential Plan Coverage Act

This section restores eligibility for premium tax credits to lawfully present individuals by repealing all restrictions previously imposed under Section 71301 of Public Law 119–21, effective as if those restrictions had never been enacted.

This section allows certain aliens lawfully present in the United States with household income not greater than 100 percent of the poverty line, but ineligible for Medicaid due to their alien status, to be treated as applicable taxpayers with income equal to 100 percent of the poverty line for purposes of the premium tax credit. The rule applies to taxable years beginning after December 31, 2025.

This section expands state options under the basic health program by allowing a state to set the maximum household income for eligibility at any percentage between 200 percent and 250 percent of the poverty line (from 200 percent). The change applies to plan years beginning on or after January 1, 2027.