Pennsylvania Health Insurance Enrollment Drops due to Rising Premiums

About 85,000 residents in Pennsylvania have dropped their health insurance coverage, largely attributed to soaring premiums.

The state’s health insurance marketplace, known as Penny, saw its enrollment shrink to 485,000 after the January 31 registration deadline. This means that nearly one in five members could no longer maintain their plans, as reported by the agency.

Premiums that were once manageable for low-income individuals, thanks to federal subsidies, almost doubled in 2026. This change occurred after Congress did not extend the subsidies initiated during President Biden’s administration.

“Penny enrollees face an average price hike of 102% to remain on their plans for 2026, creating a considerable affordability barrier for many residents,” the agency stated.

Those who exited the plan tended to be older, living in rural regions, and had incomes just above the Medicaid cutoff.

On the other hand, nearly 80,000 new enrollees signed up for Penny this year, marking a 12% decline from the previous year.

Additionally, there are about 33,000 people enrolled in low-tier plans which feature lower premiums. However, many of these individuals might end up incurring out-of-pocket expenses for any medical needs.

Penny anticipates that cancellations will likely rise in the upcoming months, and the complete repercussions may not be clear until spring.

Members have mentioned that premiums can consume up to 50% of their income, causing significant worry about their ability to remain healthy and maintain employment without insurance.

The increase in the uninsured or underinsured population is expected to place a “considerable strain” on the healthcare system in Pennsylvania, especially impacting rural hospitals and the broader economy.

“A growing uninsured demographic adds to bankruptcies and debt for healthcare providers, stifles entrepreneurship, and invites greater uncompensated care costs for hospitals,” the agency noted.

Moreover, without insurance coverage, residents may delay seeking medical treatment, which can lead to poorer health outcomes and an increase in emergency room visits.

“If symptoms go untreated, Pennsylvanians risk preventable complications, long-term disabilities, and a diminished capacity to live independently,” the agency explained.

Though the open enrollment period has concluded, Pennsylvania residents can still enroll if they lose their insurance or experience significant life changes, such as moving or having a child.