TL/DR –
Health insurance rates may increase for Pennsylvanians next year as insurance carriers on the state’s Affordable Care Act marketplace, Pennie, propose a 19% increase for individuals and a 13% increase for small businesses. The Pennsylvania Insurance Department will review these proposals and make final approvals this fall, with public comments accepted until September 2. This comes as enhanced federal tax credits that have helped Pennsylvanians save on insurance are set to expire at the end of this year, which could make insurance more expensive for some residents.
Mounting Health Insurance Costs for Pennsylvanians with Potential Premium Increases and Tax Credits Expiry
Pennsylvanians could face an increase in health insurance costs in 2026 due to potential premium rate hikes and the possible expiry of boosted federal tax credits. Insurance carriers in the state’s Affordable Care Act marketplace, Pennie, propose an average premium increase of 19% for individuals and 13% for small businesses and groups.
The Pennsylvania Insurance Department is expected to approve these proposals in the fall, with public comments open till September 2. Officials urge residents to share their experiences and concerns regarding the potential impact of these increases on their ability to afford coverage.
“This year, shopping around to find the best plans that suit individual needs and financial situations is more critical than previous years”, said Pennsylvania Insurance Commissioner Michael Humphreys. A record-breaking 496,661 people enrolled in health insurance plans via Pennie in last year’s open enrollment period.
About 90% of the enrollees qualified for premium tax credits, designed to offset monthly premium amounts based on income. However, the enhanced premium tax credits, introduced in 2021, are due to expire at year-end unless Congress extends them. Experts caution that this could challenge some Pennsylvanians’ ability to afford insurance in the coming year.
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