To amend the Internal Revenue Code of 1986 to limit eligibility for the premium tax credit to individuals enrolled in qualified health plans offered by health insurance issuers that offer at least one qualified health plan which provides the option to make monthly cost-sharing payments, and for other purposes.
About This Bill
Committee
Latest Action · June 25, 2026
Referred to the House Committee on Ways and Means.
The SMOOTH Payments Act would change eligibility rules for federal health insurance premium tax credits by requiring that insurance companies offer at least one health plan with monthly cost-sharing payment options. Under this bill, individuals would only be eligible for the tax credit if their insurer offers a plan allowing them to pay zero out-of-pocket costs at the time they receive medical services and instead pay their cost-sharing obligations in monthly installments, similar to how prescription drug costs are handled under Medicare. The legislation would exclude catastrophic health plans and any plans offered by insurers that don't provide this monthly payment option from the tax credit program. The changes would take effect for tax years beginning after December 31, 2026. This bill aims to make healthcare costs more manageable for consumers by spreading out-of-pocket expenses across the year rather than requiring immediate payment at the point of care.
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