Tax Credits Expire, Premiums Spike in Pennsylvania
As the start of the year approaches, tax credits that reduce costs for Affordable Care Act plans are set to expire, and leaders at Penney report that around 500,000 individuals in Pennsylvania’s health insurance market are facing doubled premiums.
Understanding Premium Increases
Devon Trolley, Penney’s executive director, noted that many Pennsylvanians are experiencing premium hikes of over 100% with their ACA plans. Trolley pointed out that the rise in costs is largely due to the expiration of subsidies that Congress failed to extend by January 1. “There won’t be any renewal. It seems unlikely there will be any change. So, we’re advising people to make the best choices they can, which unfortunately is very tough for many,” she explained.
Current Open Enrollment Period
During this ongoing open enrollment period, which concludes on January 31, Penney has seen approximately 1,000 individuals drop out each day. Trolley expressed concern that this trend may push many to skip crucial medical appointments and routine maintenance care, which are vital for catching health issues early. “So, they’re often caught in a tough spot, having to gamble on their health or just hope things improve with their chronic conditions. Some costs are taking up 30 to 40 percent of their income,” she added.
The debate over extending subsidies caused significant turmoil in Congress last year, leading to a partial government shutdown and a failure to either pass a renewal or an alternative.
Response from Rep. Scott Perry
While some Republicans in Pennsylvania are pushing for a vote on extending the subsidies in the House, Rep. Scott Perry, representing the 10th District, stated that the significant premium increases are indicative of a healthcare system that benefits large insurance companies. “It’s outrageous and unacceptable. This issue was created by the government, and we need to address it. I agree with that perspective. However, we must provide real solutions—continuing to support a flawed system won’t fix anything,” he remarked.
