Nearly all health insurance carriers offering individual plans on Pennie, Pennsylvania’s Affordable Care Act marketplace, have submitted proposed average premium increases ranging from 10.5% to 41% for the 2027 coverage year, according to filings released by the Pennsylvania Insurance Department.
Proposed Rate Increases and Market Impact
The rate requests submitted in August show an average proposed increase of 17.1% across the individual market and 11.5% in the small group market for 2027, according to data from the Pennsylvania Insurance Department. Insurance carriers set these rates based on projected medical claims, administrative expenses, and expected profit margins for the upcoming year.
Among the carriers filing for the highest adjustments, Ambetter Health of Pennsylvania requested an average increase of 40.9%, Highmark Benefits Group requested 21.4%, and Partners Insurance Company asked for 20.5%, according to state records. In the greater Philadelphia area, Keystone Health Plan East requested an average increase of 14.7%, which is down from its 23.5% request the previous year.
Pennsylvania Insurance Commissioner Michael Humphreys stated that the rates are higher than officials anticipated and reflect rising costs across the broader health care environment. According to Humphreys, the department’s team will examine each filing to ensure the proposed rates are reasonable, justified, and limited to what is necessary to deliver promised benefits.
The public can submit testimony on the proposals during a public comment period that runs through August 22. The Pennsylvania Insurance Department will review public feedback alongside the carrier filings before issuing final rate approvals in the fall. Annual open enrollment for the ACA marketplace begins November 1.
Affordability Pressures and Expiration of Federal Subsidies
The proposed rate hikes arrive as many Pennsylvanians face higher out-of-pocket costs following the expiration of enhanced pandemic-era federal tax credits at the end of 2025. According to state insurance data, many residents who lost those federal subsidies are now paying double on average for their health coverage compared to the prior year, with some monthly premiums exceeding $1,000.
Financial strain has already driven coverage losses across the state. Pennie data shows that more than 177,000 Pennsylvanians have canceled their ACA plans over an eight-month period, a trend state insurance experts attribute to enrollees dropping coverage because they can no longer afford the monthly payments.
Antoinette Kraus, executive director of the Pennsylvania Health Access Network, stated that additional premium increases will create a heavy burden for small business owners, gig workers, restaurant staff, child care professionals, and retail employees who lack employer-sponsored health benefits. Kraus warned that the new rates could price even more residents out of coverage, forcing those who remain insured to accept higher deductibles, reduced benefits, or cuts to other household expenses.
State insurance experts note that a majority of Pennie enrollees still qualify for some level of tax credits or financial assistance, though overall out-of-pocket costs remain higher than in previous years.
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