Insurance Department Announces 2023 Health Insurance Rates; Highlights more plan options and the positive impact of the Inflation Reduction Act

Harrisburg, Pennsylvania – Acting Insurance Commissioner Michael Humphreys today announced Pennsylvania’s 2023 individual and small group Affordable Care Act (ACA) health insurance rates, highlighting increased competition in the multi-county market and how the Inflation Reduction and Expansion Act subsidies contributed to the lower rates. Pennsylvanians can expect more options and more competition as they shop for health insurance plans in 2023.

This is the fifth year that Pennsylvania has seen increased competition, demonstrating Pennsylvania’s efforts to stabilize and improve affordability in this market.

Based on the products already approved by the Insurance Division, all insurers currently offering individual market coverage in Pennsylvania’s 67 counties will continue to offer plans in 2023 with a statewide average increase of 5.5% . The Commonwealth will see an average increase of 5.3% in the small group market.

One of the main factors that pushed rates down was adjustments to the government’s reinsurance program. The Inflation Reduction Act and the subsidy extension beyond 2023 provided the department with an opportunity to raise coinsurance from 40 percent to 53 percent.

“The signing of the Inflation Reduction Act (IRA) in August 2022 expanded the enhanced premium tax credits that were previously provided through the American bailout,” Humphreys said. “These credits have reduced, and in some cases eliminated, health insurance premiums for thousands of lower- and middle-income families enrolled in health coverage through Pennie®, and now will continue to do so through 2025 thanks to IRAs.”

One of the department’s top priorities has always been to increase competition within counties, which ultimately provides more options for consumers seeking comprehensive health insurance plans that provide stable benefits.

With more than 338,000 Pennsylvanians enrolled through Pennie — Pennsylvania’s own state health insurance marketplace — and nine out of 10 consumers eligible for financial assistance, it’s critical that the department continue to educate people on how to protect themselves and their families.

“This open enrollment, we are excited to be able to connect customers with the enhanced premium savings provided through the Inflation Reduction Act. This year, we will focus on reducing the number of uninsured Pennsylvanians by reaching historically marginalized communities and by providing a choice of quality and affordable health coverage options,” noted Pennie CEO Zachary Sherman. “Penny’s open enrollment period begins November 1st, and we strongly encourage those looking for health insurance to visit penny.com to calculate their potential savings, check their coverage options and enroll in the best plan for them, their families and their budget.”

Pennie is the only place that connects Pennsylvanians with financial help to reduce the cost of coverage and care. Pennie’s goal is to make it easier for Pennsylvania residents to access coverage through education, assistance and improved customer service.

Open enrollment begins November 1 for coverage beginning January 1, 2023. Pennsylvania residents should remember that Pennie remains available to anyone who experiences an eligible life event, such as moving to a new part of Pennsylvania or losing coverage from another source.

“The Wolf administration remains dedicated to the health, well-being and financial security of all Pennsylvanians and has taken various steps to educate consumers about the importance of health insurance before, during and after COVID-19,” Humphreys said. “Governor Wolf and I know that Pennsylvanians want and deserve equal access to health coverage, including increased options within the individual market.”

The Insurance Department and Pennie strongly encourage Pennsylvania residents to seek the best plan that fits their individual, family and financial needs, even if they are currently enrolled in a health insurance plan through Pennie.

Pennsylvania residents can start shopping for health and dental coverage during Pennie’s open enrollment period, November 1, 2022 through January 15, 2023.

Consumers who want to learn more about health insurance should visit the department’s dedicated health insurance page. To learn more about Pennie, visit Pennie 101.

Pennsylvania residents with insurance questions can contact the Department of Insurance’s Bureau of Consumer Services online or at 1-877-881-6388.

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