How upcoming tax credit changes could affect your health insurance costs

If you or your family purchase health insurance through Pennie^®, you might be eligible for tax credits to help reduce the cost of your monthly premiums.

But some of those tax credits might be going away in 2026, and it could impact how much you pay for coverage.

Tax credits (sometimes called healthcare subsidies) for individual or family coverage have been around for years, but one particular credit - called the Enhanced Premium Tax Credit (EPTC) - was enacted in 2021 to expand eligibility of and further lower premiums for individual coverage bought on healthcare exchanges, like Pennie. The EPTC is set to expire at the end of 2025 unless Congress acts to extend it for 2026.

If the EPTC is not extended, many people will either no longer be eligible for tax credits or see their health insurance premiums jump dramatically – with some estimates suggesting average monthly premiums could more than double in 2026.

Such a large cost increase could make coverage unaffordable for some, causing them to forgo health insurance altogether.

When that happens, it can hurt not just those uninsured people and families, but the entire healthcare system. If uninsured Pennsylvanians avoid seeking medical care, it can lead to health issues not being detected or treated, putting lives in danger.

Capital Blue Cross wants to make sure healthcare coverage is affordable and available for everyone, so we support the extension of the Enhanced Premium Tax Credit as one way to help people get the coverage and care they need.

If you want to know whether you might be eligible for tax credits, you can use Pennie’s savings calculator to find out.

Capital Blue Cross offers several individual and family plan options designed to meet different personal needs and budgets. If you have questions, call us at 800.451.1181, or you can walk in or schedule an appointment at one our Capital Blue Cross Connect health and wellness centers.

We’re here to help and we’ll continue to keep our members updated on the tax credit and healthcare coverage options available to them.

FAQ on tax credits for individual and family plans

Are tax credits or subsidies available when someone buys a health plan through the federal marketplace or through a state-based exchange (Pennie^®, in Pennsylvania)?

Yes, the Patient Protection and Affordable Care Act (the 2010 law that created the health exchange) offers advanced premium tax credits for individuals and families based on income level and household size. If you qualify for the advanced premium tax credit, the credit will reduce your monthly premium cost.

In 2021, a law called the American Rescue Plan Act created additional tax credits - called Enhanced Premium Tax Credits (EPTCs) - for health plans purchased on federal and state exchanges, including Pennie. The law expanded eligibility and increased the available tax credits for people who buy a health plan on an exchange. The EPTCs will end on December 31, 2025, if Congress does not extend them.

Are there still tax credits available for plans purchased in 2026?

Advanced premium tax credits are still available to those who qualify based on their income and household size. As of mid-December 2025, however, Congress has not acted to extend the additional EPTCs that are set to expire on December 31, 2025. Some people may find that their tax credit for 2026 is lower, and others may no longer qualify for a tax credit at all.

Pennie offers a savings calculator you can use to estimate whether you might be eligible for any premium tax credits in 2026.

I received my January 2026 premium invoice, and I saw that I'm no longer getting some of the premium tax credits I received last year. Why?

Enhanced Premium Tax Credits are ending on December 31, 2025, and Congress has not acted to extend them. As a result, some people may see a reduced tax credit for their 2026 monthly premiums, and others may no longer qualify for a tax credit at all.

I need help choosing a Capital Blue Cross individual and family plan for 2026. Who can I contact to discuss my options?

Capital Blue Cross offers a variety of individual and family plan options designed to meet different personal needs and budgets. If you have questions, please call 800.451.1181. Additionally, you can walk in or schedule an appointment at one of our Capital Blue Cross Connect health and wellness centers.

If you have questions about selecting a plan through Pennie, you can call Pennie Customer Service at 844.844.8040.

If Congress does not extend the tax credits by December 31, 2025, is it possible they may still take action to extend the credits in 2026?

If Congress does not extend the credits by the end of 2025, they may still approve an extension in 2026, though it's unclear how or when such an extension might be applied to premiums already paid for 2026. Capital Blue Cross is carefully monitoring any developments so we can notify our members promptly and make any adjustments to your premium as needed.

Is Capital Blue Cross doing anything to support an extension of the tax credit?

We have been advocating to have the EPTCs extended beyond 2025 so that care remains affordable for those who get their coverage in the individual marketplace.

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