Pennsylvania’s Affordable Care Act marketplace, Pennie, is slated for double-digit rate increases in 2027 after state regulators finalized an average 16% jump for individual and family plans. According to the Pennsylvania Insurance Department, small business plans will see an average increase of 10% next year.
The approved hikes arrive just below initial insurer requests, which averaged 17% for individual coverage and 11% for small businesses. Pennsylvania Insurance Commissioner Michael Humphreys stated that officials fought carriers for every possible reduction, but mounting cost pressures made increases unavoidable.
“We understand that these rate increases are rough on Pennsylvania families and businesses, and we fought insurers for every savings we could reasonably assert,” Humphreys said in a statement.
Driving the rising costs are escalating healthcare and prescription drug expenses, alongside federal Medicaid cuts. Furthermore, the expiration of a key financial incentive program is expected to swell the ranks of the uninsured, shifting uncompensated care costs across the broader healthcare system and forcing insurance prices upward.
Pennie Rate Hikes Follow Federal Subsidy Expiration
The 2027 adjustments compound a severe affordability crunch that began after Congress failed to extend enhanced federal premium tax credits. Those credits previously capped ACA premiums at 8.5% of a recipient’s income. When they expired at the beginning of last year, plan costs more than doubled for many enrollees in 2026, prompting at least 177,000 residents to drop their coverage.
Patient advocates warn that the 2027 rate hikes will push insurance completely out of reach for thousands more. Alisha Hoffman-Mirilovich, executive director of Action Together NEPA and a member of the Affordable Healthcare for PA coalition, described the situation as a five-alarm fire. Coalition representatives intend to make insurance affordability and the expired tax credits central issues in upcoming midterm elections.
“You don’t need to be an economist to understand that when health insurance costs skyrocket while wages remain stagnant, people are going to suffer in very real ways,” Hoffman-Mirilovich said.
Open Enrollment Dates and Financial Assistance Options
Devon Trolley, executive director of Pennie, advised current customers to closely review their policy options during the upcoming open enrollment window. Marketplace prices vary significantly depending on age, geographic location, and household income.
Standard ACA income-based tax credits remain available for individuals earning up to 400% of the federal poverty level, which translates to roughly $62,600 per year for a single person or $128,600 for a family of four.
Pennie’s open enrollment period runs from November 1 through January 15. Consumers seeking coverage that takes effect on January 1 must complete their enrollment or plan modifications by December 15. Meanwhile, New Jersey’s marketplace, Get Covered New Jersey, has not yet released its 2027 rates and will keep enrollment open through the end of January.