Health insurance costs to rise again in Pennsylvania
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Pennsylvanians buying health insurance through Pennie, the state's Affordable Care Act marketplace, may see another jump in costs next year.
Why it matters: It's the second straight year of average increases in the double digits, and more than 200,000 people have already dropped Pennie coverage since last year's open enrollment period.
The big picture: Individual health plan premiums will rise nearly 16% on average next year, while small-business group rates will climb an average of 10%, per rates finalized last week by the Pennsylvania Insurance Department.
Zoom in: What people pay for coverage next year will vary widely by insurer and plan, as well as age, location, income and household size.
- In Western Pennsylvania, Highmark Inc. members enrolled through Pennie will see a 14.5% average rate increase in 2027.
- Highmark Benefits Group: 19.7%
- UPMC Health Network: 9.7%
- UPMC Health Plan Inc: 13.5%
Context: State regulators say rising health care costs, along with greater demand for care, are pushing premiums higher. Federal safety-net cuts and Congress letting enhanced premium tax credits expire are adding to the pressure.
- New Medicaid work requirements could leave more people uninsured in 2027, shifting more uncompensated care costs to hospitals.
What they're saying: Many insurers initially sought steeper rate hikes, but state regulators approved smaller increases after reviewing whether the requests were "reasonable and justified," per the department.
- The Pennsylvania Insurance Department ultimately rejected $94.7 million in proposed premium increases.
- "We fought insurers for every savings we could reasonably assert," Pennsylvania Insurance Commissioner Michael Humphreys said in a statement.
What's next: Open enrollment for 2027 insurance will run from Nov. 1 through Jan. 15.