Pennsylvanians buying 2027 health insurance on Pennie will face 16% average premium increase

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Pennsylvanians will face higher health insurance premiums this fall when they shop for 2027 coverage on Pennie, the state’s Affordable Care Act marketplace.

Individual health plans for next year will see an average premium increase of nearly 16%. Plan prices for small businesses will rise by an average of 10%. The state Insurance Department finalized the insurance rate hikes on Friday.

“We understand that these rate increases are rough on Pennsylvania families and businesses, and we fought insurers for every savings we could reasonably assert,” Pennsylvania Insurance Commissioner Michael Humphreys said in a statement.

State insurance regulators say federal health care cuts to safety net programs, the loss of pandemic-era enhanced premium tax credits last year, and increased use of medical care and prescription drugs are driving up insurance costs in the commonwealth.

Already, more than 200,000 people have dropped health insurance coverage through Pennie since last year’s open enrollment period, when people faced sticker shock after Congress failed to extend boosted pandemic-era tax credits.

Many people have cited unaffordable premiums and have chosen to go uninsured instead.

How much will people pay for ACA health plans in 2027?

Open enrollment on Pennie for 2027 health insurance will run from Nov. 1 through Jan. 15. It’s one of the only times a year when people can make changes to their coverage, outside of qualifying life events.

The exact amount any one person will pay for coverage next year will vary greatly by insurance carrier and specific plan. Other factors like age, address, income and household size are also calculated into monthly premium charges.

Most Pennie shoppers will still be eligible for standard premium tax credits or other kinds of financial assistance that can help offset some monthly costs, insurance experts said.

Average premium increases for 2027 range from a 1.4% hike among Oscar Health Plan of PA plans up to a 35% increase among Ambetter Health of Pennsylvania plans.

Most insurance carriers had initially requested higher rate increases than what was approved by state insurance regulators, who review requests every year to determine whether they are “reasonable and justified.”

Pennsylvania Insurance Department officials said they denied $94.7 million in “unjustified insurance premium increases” this year.

However, the department did approve higher premium rate increases than initially requested for two insurance carriers: Health Partners Plans and Keystone Health Plan East.

State officials determined the carriers would need to raise premiums more than originally estimated to cover a “less healthy” pool of insured members and “worsening medical and drug trends,” respectively.