Why Losing Health Insurance Credits Could Hit Everyone's Wallet

Healthcare costs are already skyrocketing, and the situation could get worse if Congress doesn't act soon. In 2026, many Pennsylvanians and Americans might face a huge increase in insurance premiums if federal tax credits for individual health insurance aren't extended. This isn't just a problem for those buying insurance through Pennie, the state's health insurance exchange. It could have a domino effect on the entire healthcare system, making costs higher and quality of care lower for everyone. Prescription drug spending in the U. S. hit a staggering $460 billion last year. This is much higher than in other countries. Many factors are driving up healthcare costs, like the consolidation of providers, complex care settings, and rising workforce costs. Plus, advanced medical technologies, while life-saving, come with a hefty price tag. All these factors make it tough to keep healthcare affordable. The expiration of the tax credits will only make things worse. Higher premiums could lead to more uninsured people, putting a strain on families, employers, and communities. When people drop coverage, it sets off a chain reaction. Costs shift to those who remain insured, driving premiums higher across the board. Doctors, hospitals, and clinics must absorb the cost of caring for uninsured patients, which can jeopardize their financial stability. Local governments, Medicaid, and public health institutions will also feel the pinch, squeezing already tight budgets. The human cost is also severe. Without preventive care, chronic disease management, and timely treatment, people face worse health outcomes, deeper disparities in care, and real public health risks. These are not just policy concerns; they are real-life challenges. Extending these tax credits is not just about making coverage affordable for individuals. It's about preserving the stability of our entire healthcare system. While calling for the continuation of the tax credits, it's also important to consider broader, constructive reform. The healthcare system has flaws: too much complexity, too many administrative hurdles, and persistent barriers to care. It's crucial to drive conversations about modernizing care delivery, streamlining administrative burdens, and improving collaboration among insurers, providers, employers, and patients. Reform should not come at the cost of taking away what currently works for millions of people. Instead, the most responsible path is bipartisan and incremental. Congress needs to act and extend the enhanced premium tax credits. But we also need to commit to a long-term, bipartisan process of real improvement. By doing so, we can ensure that Pennsylvanians and Americans more broadly have the peace of mind in knowing their healthcare remains accessible, affordable, and sustainable next year and beyond.