Rural Pennsylvanians face quadruple health insurance costs without tax credit extension | Opinion

By Matthew Espenshade

Many Pennsylvanians are facing a dramatic increase in health insurance coverage costs, which could price-out millions from accessing vital healthcare. As president of the Pennsylvania Grange, the oldest and largest rural advocacy organization, I am truly concerned about the impact cutting the premium tax credits will have on both some of the most vulnerable as well as some of the hardest working people we have in rural Pennsylvania.

Under the previous administration, an expansion was initially authorized by the American Rescue Plan Act of 2021 and extended under the 2022 reconciliation act, which expanded the structure of the premium tax credit but expires after the at the end of calendar year 2025. The Congressional Budget Office has determined that the expiration of this premium tax credit will ultimately result in 4.2 million Americans becoming uninsured.

The premium tax credit ultimately reduces enrollees’ out-of-pocket costs for ACA premiums purchased through the marketplace. This is calculated by comparing the second lowest-cost silver plan available in your region with the maximum household contribution as a percentage over time.

Prior to the change in 2021, individual had to have income between 100 percent and 400 percent of the federal poverty level, be lawfully present in the United States, not be eligible for public coverage, and not have access to an affordable offer through their employer to qualify for the premium tax credit.

With the change enacted under the American Rescue Plan Act, eligibility was expanded to include enrollees who had income above 400 percent of the federal poverty level and reduced the maximum household contribution number.

The difficult truth is that millions of Americans have now become reliant on the savings they were offered, which is why maintaining the enhanced credits are so popular. It is also worth noting the support for this policy was incredibly bipartisan with a support from all sides.

I have no doubt the popularity of extending this credit is because of the very real, very tangible benefit for working families and individuals to purchase health insurance directly through the marketplace.

Today, we face the elimination of the aforementioned expansion of eligibility requirements at the close of this year.

Pennie, which is Pennsylvania’s official insurance marketplace, utilizes these tax credits. Pennie has increased its enrollment by 47% in recent years.

If the tax credits expire this fall, 90% of Pennie enrollees could face an 81% average increase in their monthly premiums, double for people living in rural areas. For many rural Pennsylvanians, this could mean paying four times more than they do now: a devastating burden for anyone in this current economy.

Thanks to the tax credits, Pennsylvania consumers have saved $600 million annually. The expiration of these tax credits will ripple through our rural communities, eliminating critical healthcare access. These reductions will ultimately result in lower job productivity, increased school absences, and fewer employment opportunities.

U.S. Sen. Dave McCormick has an opportunity to protect Pennsylvanians by extending these tax credits and saving hard working Pennsylvanians access to health care. It’s not too late to do what’s right for the people of Pennsylvania: protect them from these catastrophic premium increases.

The Pennsylvania Grange looks forward to working with Sen. McCormick and the rest of the Pennsylvania Congressional delegation on this critical issue.

Matthew Espenshade is president of Pennsylvania State Grange.