Some Erie County residents are suffering from sticker shock after seeing 2026 health insurance premium prices on Pennie, Pennsylvania’s official marketplace for Affordable Care Act plans.
Higher premiums and the expected expiration of enhanced premium federal tax credits have sent costs soaring for some customers, said Greg Deemer, president of Bayfront Benefit Solutions.
“I had a client see her monthly premiums go from $180 a month this year to around $400 a month for 2026,” said Deemer, who helps individuals and small businesses in Erie County purchase health insurance. “That’s a huge increase.”
Health insurance rates were expected to rise in 2026 due to higher claims and the popularity of high-cost GLP-1 drugs like Ozempic, Deemer said.
But Congress’ decision, at least for now, not to extend the enhanced federal tax credits has turned an expected 12%-21% increase into a 200% increase or more for some people.
“There are still some tax credits for people who qualify, but the amount will be smaller,” Pennie officials said in a news release. “Individuals who make around $62,000 a year or more (around $84,600 or more for a couple) will not qualify for any tax credits.”
The open enrollment of the Affordable Care Act of the United States offers a health insurance program for all the U.S. citizens across the country.
Congress approved the enhanced premium tax credits as part of the American Rescue Plan Act and extended them under the Inflation Reduction Act. They are set to expire Dec. 31.
The enhanced tax credits increased subsides and expanded eligibility to include people earning more than four times the federal poverty level.
Only the basic tax credits still remain, unless Congress reaches a deal to extend the premium ones.
“What is happening is that we now see the 400% cliff again,” Deemer said. “One couple I’m working with will receive a $400 a month tax credit if their income is below $85,000 and nothing if it’s above $85,000.”
Coupled with the rate increases from health insurers, it’s a double whammy. The premium tax credits also limit premiums to 8.5% of the person’s annual income.
Those who receive health insurance through an employer are also feeling the pain. Many group plans are increasing by 10% or more, sometimes coupled with higher deductibles and out-of-pocket maximums.
“I have a business client whose insurance is going up 18% in 2026,” Deemer said. “He’s eating the increase himself but telling his employees that there won’t be any raises next year.”
Deemer worried people will choose cheap plans with poor coverage
Sixty-one plans are available to Erie County residents on the Pennie website. All of them are either Highmark or UPMC Health Plan.
Deemer is afraid that people will choose less-expensive plans with reduced coverage just to afford the monthly premiums. The concern is that they could pay much more out of pocket if they require a hospital stay or expensive medications.
“Right now, I’m recommending that people hold on for a few weeks and see if Congress extends the premium tax credits,” Deemer said. “The deadline is Dec. 15, so we have some time.”
Contact David Bruce at dbruce@gannett.com. Follow him on X @ETNBruce.
This article originally appeared on Erie Times-News: ‘That’s a huge increase.’ Pennie’s health plans spark sticker shock