Marketplace Health Insurance Subsidies are in Jeopardy

Congress has yet to act on extending subsidies provided by the American Rescue Plan (ARP) for coverage on Marketplace coverage, including for state-based exchanges like Pennsylvania’s Pennie marketplace. Expiration of the ARP subsidies will impact the progress Pennsylvania has made in increasing enrollment and lowering the uninsured rate in Pennsylvania and nationwide. An analysis by the Robert Wood Johnson Foundation projected the commonwealth could experience an approximate 12% decline in marketplace enrollment and an increase in the uninsured rate of approximately 7% from 2022 to 2023. While waiting for Congress to address this issue, enrollment assisters and consumers must brace for increased costs and confusion if subsidies are not reinstated by Open Enrollment, which begins on November 1, 2022.