HARRISBURG, PA — Facing some of the steepest proposed health insurance rate increases in recent history, the Shapiro administration says state regulatory power is legally limited and is urging Congress to intervene before rising costs push more residents out of coverage.
Nearly 202,000 Pennsylvanians have canceled their coverage through Pennie, the state’s official health insurance marketplace, over the past nine months. The sharp drop in enrollment follows the expiration of enhanced federal subsidies, which previously lowered monthly out-of-pocket costs for low- and middle-income policyholders.
Health care workers, consumer advocacy groups, and labor unions are warning that enrollment will continue to drop if state regulators approve proposed rate hikes for 2027. Insurers in Pennsylvania's individual market have requested double-digit rate increases averaging between 10% and 40%, with small-group business plans seeking increases up to 34%. A broad statewide coalition is urging state regulators to reject the requests and either mandate steep reductions or freeze rates.
However, the Pennsylvania Insurance Department (PID) emphasized that state law does not permit a unilateral or blanket freeze on rates. By statute, the agency's actuaries must evaluate filings to ensure rates are not "excessive, inadequate, or unfairly discriminatory" while accounting for rising care delivery and prescription drug expenses.
Administration officials reiterated that without federal legislative action to restore enhanced subsidy funding, state regulatory reviews alone cannot prevent widespread price shocks for consumers.
The PID is currently conducting its annual rate review process and plans to release finalized rates ahead of the upcoming open enrollment period, which runs from Nov. 1 through Jan. 15.
Key Deadlines & Official Resources
- Rate Review Process: The Pennsylvania Insurance Department expects to announce final, approved 2027 rates prior to the start of open enrollment.
- Open Enrollment Window: Nov. 1 through Jan. 15.
- State Marketplace Portal: Pennsylvanians can explore coverage options, compare plans, and review financial assistance eligibility directly at Pennie.com.
- Consumer Complaint Hotline: Residents with questions regarding insurance rate filings or coverage issues can contact the Pennsylvania Insurance Department Consumer Protection Bureau or call 1-866-PA-COMPLAINT.
