Pennsylvania residents brace for a significant increase in health insurance premiums for 2026, with some price hikes reaching 38%. Small business owners, gig workers, and other Pennsylvanians purchasing health insurance through the Affordable Care Act (ACA) marketplace can expect an average premium increase of nearly 22%. This comes as a shock to many, as the state's insurance regulators acknowledge that some current customers will face 'shocking' price hikes.
The primary driver of this cost surge is the expiration of enhanced tax credits that helped individuals afford their monthly premiums. These credits, introduced in 2021 as part of COVID-19 relief funding, are set to end at the end of the year. Without these subsidies, many Pennsylvanians may be forced to drop their health coverage, as the additional cost could make it unaffordable.
The situation is particularly dire for those in rural areas, older individuals not yet eligible for Medicare, and working middle-class earners. For instance, Lauri Cumming, a resident of Havertown, faces a daunting prospect. She and her husband, both 60, currently pay around $1,000 monthly in premiums. Without subsidies, this would skyrocket to approximately $1,900. The impending premium hikes for 2026 further exacerbate the financial burden.
Andrea Deutsch, a small business owner and mayor of Narberth, faces a similar dilemma. She pays about $700 monthly for her insurance plan after tax credits, but estimates that she would need to pay over $1,400 monthly next year for the same coverage. This could force her to make a heart-wrenching choice between keeping her pet supply store open and maintaining her health insurance to manage Type 1 diabetes and other conditions.
Despite the uncertainty, Pennie specialists advise individuals to review and shop for plans during this year's open enrollment period, which runs from November 1 to December 15. Congress has the power to extend enhanced tax credits, which could significantly reduce insurance rates by 3% to 5%. However, time is of the essence, as the current situation highlights the need for swift action to protect Pennsylvania families and those across the nation.
