Changes Happening at Pennie Due to Federal Law

1. Financial Savings Eligibility For Non-Citizens  

One outcome of the H.R.1 (One Big Beautiful Bill Act) was that several categories of lawfully present immigrants are no longer eligible for federal premium tax credits, also known as financial savings.    

Starting in 2027, only these three groups of non-citizens will be eligible for financial savings through Pennie:

• Lawful Permanent Residents (green card holders)   

• Cuban and Haitian entrants under the Refugee Education Assistance Act of 1980   

• Residents covered by a Compact of Free Association (COFA) from Micronesia, the Marshall Islands, or Palau   

Click here for the list of other lawfully present immigrants who will no longer be eligible for financial savings starting in 2027.  

Note: A separate federal change took effect in 2026 where individuals who are lawfully present but subject to the five-year Medicaid waiting period are no longer eligible for financial savings through Pennie if their income is below a certain threshold.  

2. Incorrect income penalties during tax time 

Due to federal changes, there are more penalties if you do not update your Pennie account with income changes throughout the year. The penalties happen when you have an increase in income that is more than the income you put in your Pennie application.  

Note: This applies to anyone in your household that has an increase in income, even if they are not enrolled through Pennie. For example, if your spouse’s income goes up, that counts as your total household income that needs to be updated in your Pennie application.  

The financial savings you receive are based on your household income. If your household income ends up being more than what you put in your Pennie account, you will end up owing that money back to the federal government during tax time.   

EXAMPLE:

If your Pennie account says your 2026 income is $35,000, you will receive around $593 a month in financial savings.   

If your income changes mid-year to $43,000, your financial savings would need to change to $481 a month.  

This is a difference of $112 a month. If your income changes in July and was NOT reported to Pennie, you would owe a total of $670 at tax time.  

($112 x 6 Months = $670)  

3. Medicaid changes in 2027 

Pennie and the Pennsylvania Department of Human Services (DHS) work closely to ensure that qualified Pennsylvanians have access to health coverage either through Medicaid, the Children’s Health Insurance Program (CHIP), or high-quality coverage available through Pennie.   

Due to federal requirements, two major changes are coming to Medicaid in 2027.  

1. Starting January 1, 2027, some Medicaid recipients must meet certain work and community engagement requirements. If they do not meet these requirements, they will be denied Medicaid.  

If someone is denied Medicaid coverage because they did not meet the work and community engagement requirements, they will NOT be eligible for financial savings through Pennie. This means the only options available through Pennie are full-price plans without financial help.  

 2. Starting January 1, 2027, some Medicaid recipients will need to have their Medicaid eligibility checked by completing a renewal every six months instead of every year. 

• • Anyone who loses Medicaid mid-year due to an income increase could enroll in Pennie coverage even outside of Open Enrollment. 
  • For both Pennie and Medicaid, you must submit documents to stay eligible.  

Click here for more information from our state partners at the Dept of Human Services.  

What can I do about these changes? 

• Pennie will be in constant communication with any impacted enrollees on any enrollment changes. You should read all communications from Pennie and your insurance company. 

• The best thing for you to do is to make sure your information is updated with any changes throughout the year in your Pennie account. This especially includes your income and any changes to your lawful presence status.  

• Plans and prices change every year, especially this year. Shop and compare plans during the Open Enrollment Period which begins November 1 and ends on January 15.  

What do Pennie plans provide compared to other plans outside of Pennie? 

• Pennie is still the only place where you can receive financial savings. These savings are in the form of a federal premium tax credit. Pennie is the only way to receive these tax credits to lower the cost of health coverage. 

• Plans through Pennie cover a full range of medical care. This includes coverage for pre-existing conditions and free preventive services. Pennie protects you from low-quality health plans and scams.  

4. Bạn đang cân nhắc các lựa chọn về chương trình chăm sóc sức khỏe bên ngoài Pennie?

You can visit Pennie’s webpage for other healthcare resources if marketplace coverage is not affordable.