The clock is ticking for Congress to extend enhanced health care tax credits slated to expire this year for more than 100,000 enrollees in Pennsylvania.
“The longer it takes for there to be action to extend the tax credits, the more risk there is of people dropping their coverage, perhaps unnecessarily,” said Devon Trolley, executive director of Pennie, the state’s health insurance marketplace.
Congress has made little progress on reaching a deal over the Affordable Care Act’s premium tax credits. Most Democrats have refused to vote for the Republican Party’s temporary budget — shutting down the federal government — unless the subsidies are extended.
If Congress does not do so before the start of open enrollment on Nov. 1, Trolley said thousands of Pennsylvanians could experience “sticker shock” from sharply higher premiums and potentially not enroll in health insurance.
Pennie currently serves 500,000 enrollees. Trolley said the average customer’s premium would more than double, and 150,000 people could lose coverage if Congress allows the tax credits to expire.
Trolley said Pennie will update rates and contact customers via phone or email to allow them to change their selection if the enhanced tax credits are extended during the open enrollment period for 2026, which runs from Nov. 1 to Jan.15.
But if consumers opt out, she warned, it may be difficult to bring them back.
“They might have written off the coverage (as) being too expensive, and may not be open to taking another look,” Trolley said.
Pennsylvania receives about $600 million in federal funding each year tied to the enhanced tax credits.
Republicans excluded a continuation of those funds from their massive tax and spending cut legislation that President Donald Trump signed in July. Pennsylvania’s entire GOP delegation to Washington voted for that legislation, including first-term Sen. Dave McCormick.
Most Republicans have remained opposed to extending the subsidies, arguing they were intended as temporary COVID-19 pandemic relief. Some whose districts heavily rely on the credits have remained open to the idea, especially as the government shutdown has dragged on.
The GOP has denounced Democrats for holding their budget votes until the subsidies are extended. Joining them in their criticism has been Democratic Sen. John Fetterman.
He’s argued that Democrats are holding the government “hostage” to get what they want, though he also said he supports continuing the tax credits.
Read more from our partners at WITF.