One In Five Pennie Customers Drop Health Care Coverage After ACA Tax Credits Expire

Got story updates? Submit your updates here. ›

According to data from Pennsylvania's Affordable Care Marketplace, known as Pennie, around 85,000 enrollees did not renew their health coverage for 2026 due to skyrocketing costs associated with the expiration of Affordable Care Act tax credits. Without those subsidies, Pennie enrollees faced an average premium increase of 102% to remain in their plans, leading nearly 18% of customers to drop coverage altogether.

Why it matters

The loss of ACA tax credits has had a significant impact on health care affordability and access in Pennsylvania, with the steepest declines seen among older, rural, and lower-income residents who rely most on subsidies to make coverage viable. This development underscores the ongoing challenges in maintaining robust enrollment in the ACA's insurance marketplaces, especially as federal support has waned.

The details

Pennie, Pennsylvania's official health insurance exchange, saw 85,000 enrollees - about one in five customers - drop their coverage for 2026 after the expiration of federal Affordable Care Act tax credits. Without those subsidies, Pennie enrollees faced an average premium increase of 102% to stay in their existing plans. In response, nearly 18% of Pennie customers terminated their coverage altogether, with the highest termination rates among older, rural, and lower-income residents just above the Medicaid eligibility level. Meanwhile, enrollment in lower-cost 'Bronze' plans increased by 30% as consumers sought more affordable options, though those plans come with higher out-of-pocket costs.

• Pennie's latest open enrollment period showed the 85,000 coverage losses for 2026.
• At the start of Pennie Open Enrollment, the exchange was pacing ahead of last year's enrollment numbers.
• Once enrollees saw the 102% average premium increase, people began to disenroll from Pennie plans.