160,000 Pennsylvanians Off Health Insurance Exchange After Price Hikes

Tens of thousands of Pennsylvanians have dropped their health insurance coverage after price hikes caused by federal pandemic-era subsidies expiring.

A July analysis by the state's Independent Fiscal Office, which looked at data from the state health exchange Pennie, shows a net decline of roughly 40,000 enrollees as of June 1 compared to the same time last year. The decline equals about an 8 percent drop.

In total, approximately 160,000 residents have left the exchange, the Independent Fiscal Office found.

Pennie reported that roughly 85,000 Pennsylvanians opted not to renew their coverage during the open enrollment period in late 2025.

An additional 75,000 enrollees canceled their coverage during the first five months of 2026.

Pennie officials previously stated that this disenrollment rate is several times higher than normal, with most departing customers citing rising costs.

As part of the Affordable Care Act, also known as Obamacare, individuals without access to employer coverage, Medicare, or Medicaid can purchase plans through Pennie. The federal government uses advance tax credits to cap out-of-pocket premium costs based on income.

During the pandemic, Congress temporarily lowered those premium caps and expanded financial assistance to higher earners. However, lawmakers failed to reach an agreement to extend or gradually phase out the enhanced subsidies before they lapsed late last year.

The steepest losses happened among residents earning more than 400 percent of the federal poverty line, which is about $109,000 annually for a family of three, who lost all assistance.

Many of these families are responsible for paying their full monthly premium, which results in price spikes of several thousand dollars per month for some households.

Overall, federal data shows the average net monthly premium after subsidies rose by 34 percent, from $187 to $251.

The Pennsylvanians remaining on the exchange are increasingly shifting toward plans with lower benefits.

Pennie sign-ups for mid-tier "silver" plans dropped 20 percent, while enrollment in lower-cost, higher-deductible "bronze" plans surged 33 percent.

Health care providers have warned that if current trendlines keep up through the end of the summer, Pennie could erase two full years of coverage gains.

Officials said they fear the growing number of uninsured residents will lead to an increase in unpaid hospital bills and drive up insurance premiums statewide.

Pennsylvania established the State Health Insurance Exchange Affordability Program in its 2024–2025 budget to help cushion price hikes, and original projections estimated funding needs at $50 million annually.

Pennie now estimates the state would require at least $600 million per year to fully offset the lost federal subsidies.