Pennsylvania residents could be facing another major jump in health insurance costs in 2027, with insurers seeking premium increases as high as 40% while the Shapiro administration says state regulators have limited authority to stop them.
According to an investigation by Spotlight PA, insurers are seeking average individual-market increases ranging from 10% to 40%. Proposed increases for small-group plans range from 4% to 34%.
That comes after nearly 202,000 Pennsylvanians canceled health plans through Pennie over the past nine months, following the expiration of enhanced federal premium subsidies that sent costs sharply higher.
Now, consumer advocates and healthcare workers are demanding that Pennsylvania regulators reject or significantly reduce the proposed increases, and some are calling for a complete freeze.
The Pennsylvania Insurance Department says it does not have blanket authority to simply freeze health insurance rates.
State law requires regulators to determine whether proposed rates are excessive, inadequate or unfairly discriminatory. The department can modify or reject a filing when insurers cannot adequately justify their requested increases, according to the department’s own health insurance rate review guide.
The department is currently reviewing the 2027 filings and says final rates will be released before Pennie’s open enrollment period, which runs from Nov. 1 through Jan. 15.
The Shapiro administration has blamed Washington, arguing that federal action is needed to address the affordability crisis.
But that explanation may offer little comfort to families already watching their monthly premiums climb.
Healthcare costs themselves are also driving increases. Experts cited by Spotlight PA point to prescription drugs, physician services and hospital care as major contributors to rising premiums.
Pennsylvania's Insurance Department says its review process can result in rates being approved, modified, rejected, disapproved or withdrawn. The department's 2027 ACA filing information is already available.
For Pennsylvanians, the bottom line is simple: another round of double-digit increases could be coming, and Harrisburg claims its ability to stop them is limited.
