85,000 Pennie customers canceled health plans due to reduced tax credits and increased costs.

Approximately 85,000 individuals who enrolled in Pennie plans for the year 2025 have opted not to renew their coverage for 2026. This significant drop in enrollment follows the expiration of enhanced tax credits introduced during the coronavirus pandemic, which had substantially reduced out-of-pocket costs for many consumers. The Pennsylvania Affordable Care Act marketplace, known as Pennie, reported that nearly one in five residents dropped their insurance coverage, as premiums in the state have reportedly doubled on average.

The total enrollment for 2026 stands at approximately 486,000, a decline from 496,661 at the close of the previous year’s open enrollment period. Notably, the number was partially buoyed by about 79,500 new enrollees. Despite this uptick in new participants, Pennie officials highlighted the potential for continued enrollment decline over the coming months. They noted a three-month lag between the cessation of premium payments and the termination of coverage, indicating that further drops may be imminent.

Recent Census data indicates that over 700,000 residents in Pennsylvania were already uninsured, underscoring the challenges many face in accessing affordable healthcare. Last summer, Pennie had projected that as many as 150,000 people could drop their coverage if Congress did not renew the expanded tax credits, which are critical for many consumers in managing insurance costs.

The average out-of-pocket expenses are expected to increase substantially for those who previously relied on the enhanced tax credits. Under the Affordable Care Act, individuals with incomes below 400% of the federal poverty level—approximately ,000—qualify for tax credits on a sliding scale, designed to help offset monthly premiums. However, the recent expiration of a provision capping payments at 8.5% of one’s income means that individuals could face dramatically steep increases in insurance costs. For example, a 60-year-old couple with a household income of around ,000 may see their premiums soar from ,225 last year to an estimated ,600 this year.

The debate over the future of these subsidy expansions has become a contentious political issue. Democrats have advocated for a permanent extension, while Republicans have opposed such measures, significantly impacting consumer choices. As a result, about 33,000 additional Pennie customers have selectively enrolled in plans with lower monthly premiums, characterized by higher deductibles and copays. This shift has led to a 30% rise in the number of consumers opting for lower-tier Bronze plans.

This increase in reliance on less comprehensive coverage could exacerbate existing pressures on rural healthcare systems. Pennie has noted that many rural counties are experiencing the most substantial losses in insurance enrollment, heightening concerns about access to necessary medical services. This situation may force individuals to depend on emergency rooms for care, further straining resources for rural hospitals facing financial challenges.

As the landscape of health insurance in Pennsylvania continues to evolve, the impact of rising premiums and declining enrollment remains a critical issue for lawmakers and constituents alike. Media News Source will continue to monitor developments in this area as new data emerges.