Venkat: Hundreds of thousands of Pennsylvanians face higher premiums, lost insurance, medical debt & bankruptcy under federal cuts
Rep. Arvind Venkat July 14, 2025 | 10:53 AM
HARRISBURG, July 14 – State Rep. Dr. Arvind Venkat, D-Allegheny, issued the below statement on the potential loss of health insurance for nearly a half-million people if federal Medicaid cuts impact premium tax credits currently subsidizing people who get their health insurance from Pennie and the Affordable Care Act.
“As an emergency physician, I have seen what happens when people lose health insurance and fall into medical debt when they become ill. Patients fear seeking necessary health care and present later in illness and sicker than they should. I have unfortunately even seen patients die from fears of medical debt hanging over them. No one chooses to have medical debt -- it happens unexpectedly when one becomes ill at the worst time imaginable. No one thinks this is a positive feature of our health care system.
“I have spoken out about the threat to Medicaid from the federal reconciliation bill. But there is a more immediate threat to the health of all Pennsylvanians from this legislation.
“Nearly half a million Pennsylvanians get health insurance under the Affordable Care Act through the Pennsylvania Health Insurance Exchange, or PENNIE. These are middle- and working-class folks who can afford health insurance because of enhanced premium tax credits from the federal government reducing their costs. This benefits all of us as when more people are insured, those costs do not get shifted onto those with insurance.
“Because the federal reconciliation bill did not extend these tax credits, instead making a deliberate choice to extend billionaire tax cuts, the premium tax credits expire at the end of 2025. This means premiums on PENNIE are estimated to rise 82% and, as a result, up to 200,000 Pennsylvanians will not be able to afford health insurance and become uninsured. They will still need health care, as we all do, and are at extreme risk of obtaining medical debt. The costs of their care will be passed on to those with insurance, raising costs for all of us.
“Last week, the Trump Administration succeeded in overturning protections against reporting medical debt on credit reports. This means efforts to decrease the adverse impact of medical debt on the personal and economic wellbeing of all Americans have ended at the federal level.
“Pennsylvania does not have the resources to step in to establish premium tax credits in place of the federal program.
“There is bipartisan legislation to reduce the risk of accumulating medical debt. House Bill 79 would require systematic transparency on hospital-based financial assistance programs to patients and the public to ensure all Pennsylvanians know whether they qualify for and how to access existing programs to help those in need. It has already overwhelmingly passed our state House with wide bipartisan support.
“Given the crisis we are headed to in 2026, we must take action now to support all Pennsylvanians and reduce the tragedy of medical debt by enacting H.B. 79.”