Pa. low income health insurance at risk if tax credit not renewed

(WHTM)– A half million Pennsylvanians are about to get sticker shock for their health insurance premiums because an important tax credit has not been renewed by Congress.

Insurance officials in Pennsylvania are sounding the alarm on Monday because they don’t seem to be heard in DC.

The Enhanced Premium Tax Credit was enacted during COVID to subsidize health insurance for individual, and lower income buyers on Pennsylvania’s marketplace called Pennie.

Roughly a half million Pennsylvanians get their health insurance this way, but the tax credit expires at the end of the year. Open enrollment for Pennie is November 1.

Without the tax credit, those premiums are expected to soar beyond most Pennsylvanian’s ability to pay, and the insurance commissioner fears that will chase people away.

“They’re going to see premiums that are 100%, 200%, 300% higher than what they paid today,” Pennsylvania Insurance Commissioner Michael Humphries said. “And it’s going to be that, oh, shoot moment where I need to figure out whether and how I can pay for insurance. And for many people, for many families, it’ll be I can’t afford this anymore.

Republican Congressman Dan Meuser, who blames Senate Democrats for the shutdown, said things have changed since COVID. “Congress should responsibly debate how to ensure those that rely on low health care premiums continue to be supported, without subsidizing insurance for the wealthy,” he said.

The Insurance Commissioner insists those subsidies help support the overall healthcare system, including reimbursements to rural hospitals that are struggling.