Harrisburg, PA – The Pennsylvania Insurance Department (PID) and Pennie sent a joint letter last week to members of the U.S Senate and House of Representatives, urging them to vote ‘no’ on the Congressional Republican reconciliation bill (H.R. 1) that could have a devasting impact across the Commonwealth. The Republican proposal fails to renew the Enhanced Premium Tax Credits (tax credits) that hundreds of thousands of Pennsylvanians who obtain affordable health insurance coverage through Pennie rely on and could lead to more than 270,000 Pennsylvanians losing their health insurance as a result of higher costs.
“The GOP proposal would be overwhelmingly bad for consumers, providers and our insurance market. It would raise the cost of health insurance and create new barriers for hundreds of thousands of Pennsylvanians,” said Pennsylvania Insurance Commissioner Michael Humphreys. “If the proposal passes as it was approved in the House, consumers will be forced to make difficult decisions about paying for groceries or health insurance. That’s unfair to all the hardworking families across the state that deserve affordable healthcare. We hope our congressional delegation understands the dangers of this proposal and how it will affect the daily lives of their local constituents and consumers across the country.”
Pennie, Pennsylvania’s official health insurance marketplace, provides coverage this year to a record-breaking 500,000 Pennsylvanians. The adoption of the GOP’s proposal threatens coverage for hundreds of thousands of Pennsylvanians who rely on these services. Pennie estimates an additional 120,000 Pennsylvanians will go uninsured due to enrollment barriers imposed by this proposal.
“We hear every day from Pennsylvanians who are relieved to find coverage that protects their health and finances,” said Pennie Executive Director Devon Trolley. “This proposal by Republicans wouldn’t just make coverage more expensive — it would make it harder to get. Pennsylvanians could face large increases in premiums and new red tape that would make it a burden to get the coverage they need.”
The letter outlined PID and Pennie’s concerns and highlighted the consequences associated with the GOP proposal. Key concerns include:
- Overall Impact: Loss of affordable health insurance for as many as 270,000 Pennsylvanians, with a projected $1.255 billion in lost annual tax credits by letting tax credits expire on Pennsylvanians.
- Rising Costs: Without Congressional action to extend the enhanced premium tax credits (EPTCs), individuals purchasing on the exchange could see average premium increases of 82% after 2025. These increases could be up to four times higher for older and rural Pennsylvanians. Learn more about EPTC impacts at pennie.com/affordability.
- New Barriers: Disruption to renewal expediency and increasing the risk of errors and fraud if Pennie’s real-time, automated eligibility verification system is reverted to manual verification.
- Marketplace Disruption: 15% increase to consumer’s share costs as a result of out-of-pocket cost allowance changes.
- Reduced Access: Shortened Open Enrollment would limit flexibility and support for new enrollees.
- Higher Administrative Costs: $5.5 million anticipated annual cost increase (8.4%) to implement these changes.
Pennsylvanians who have any insurance-related questions or have an issue with their insurer or agent may file a complaint with PID by visiting pa.gov/consumer, or by calling 1-866-PA-Complaint.