ACA Credits End, Raising Health Insurance Costs in PA

Article Summary –

Enhanced federal tax credits for the Affordable Care Act (ACA) have expired, leading to increased monthly premiums for approximately 21 million Americans, including nearly half a million Pennsylvanians who rely on ACA marketplace plans. Tori Baggot, a small business owner, exemplifies those affected, as her monthly premium nearly doubled, making health insurance her largest business expense due to her chronic illness that requires consistent specialist care. The expiration of these tax credits also poses financial challenges for Pennsylvania hospitals and clinics, which face a $229 million funding loss amid rising insurance costs.

By Danielle Smith

Many Pennsylvanians face higher health insurance premiums as enhanced federal tax credits for Affordable Care Act (ACA) marketplace plans have expired. Nearly half a million Pennsylvanians depend on ACA plans, and this change affects approximately 21 million Americans.

Tori Baggot, who runs SuperMutt Press, a small Pittsburgh-based business, was surprised by the premium hike. Through Pennie, the state’s marketplace, ACA tax credits had been her most affordable health coverage option.

“I was paying $197 monthly for my plan,” she said. “The same plan, which I re-enrolled in without any changes, now costs $365. This increase took effect on Christmas day.”

Over 496,000 Pennsylvanians using the ACA marketplace will see an average yearly increase of $581 in their insurance costs. Congress left D.C. without extending these tax credits, and although a vote is expected this month, it doesn’t assist those who’ve already chosen their plans.

Baggot noted that coverage through her husband’s employer would cost about $600 monthly, forcing her to adjust her budget to accommodate her ACA coverage. As a sole proprietor, health insurance has become her biggest business expense, and she worries about families facing similar challenges. She manages a chronic illness with the help of affordable marketplace insurance.

“I have a hypermobility spectrum disorder, requiring frequent specialist visits for pain management,” she explained. “I can’t just change my care team after years of building it, so I must pay the higher premium.”

With the end of premium tax credits, Pennsylvania hospitals and clinics, already affected by significant health care cuts, face an additional $229 million funding shortfall as insurance costs rise statewide.

This story was originally published by Public News Service.