Rising Health Insurance Premiums in Pennsylvania
State officials have indicated that insurance providers participating in Pennsylvania’s Obamacare market, known as Penny, are looking to raise premiums significantly next year. This move comes in response to increasing costs they face.
The Pennsylvania Insurance Bureau reported on Friday that insurers are proposing an average 19% increase for individual plans and about 13% for group plans typically used by small businesses. This proposed bump is noticeably higher than what was requested in recent years; for instance, increases of 7.9% in 2024 and 4.2% in 2023 were more common.
Governor Josh Shapiro has expressed concerns about potential cuts to Medicaid that could affect nearly 310,000 residents, along with expected reductions in SNAP benefits for around 140,000 individuals. The impact is further compounded by the probability that 25 rural hospitals may face closures.
“This year, Pennsylvanians might want to explore their options more thoroughly than they have in the past. It’s really important to find a plan that aligns with your needs and fits your budget,” one official noted.
The proposed adjustments vary by provider. For instance, Pennsylvania Ambetter Health proposes a 30.1% increase, while Capital Advantage Assurance Company suggests a 26% hike. Other companies like Geisinger Health Plan and Independence Blue Cross have proposed increases of 14.1% and 16.7%, respectively.
The Insurance Bureau is currently reviewing these requests and accepting public comments until September 2nd. They are expected to finalize the rates by October.
Unfortunately, a significant factor in these increases may be the expiration of federal tax credits that helped lower-income Americans afford health insurance under the Affordable Care Act. Without the extension of this support, approximately 150,000 Pennsylvanians may be at risk of losing their health coverage.
If you wish to express your thoughts on these proposed rate changes, you can reach out to the state regulators via email.
