Starting in 2027, federal law narrows which lawfully present non-citizens can receive financial savings through Pennsylvania’s health insurance marketplace, Pennie. A premium tax credit is federal financial assistance that helps lower the cost of a monthly health insurance premium.
Pennie says that, starting in 2027, only three groups of non-citizens will be eligible for these savings:
- 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
The change concerns eligibility for financial assistance. It does not mean that every lawfully present person outside these three groups is barred from buying a Pennie health plan. Pennie says other lawfully present individuals may still purchase coverage, but without financial savings.
What the three groups mean
A Lawful Permanent Resident, commonly called a green card holder, is a person who has lawful permanent resident status in the United States.
The second group is Cuban and Haitian entrants under the Refugee Education Assistance Act of 1980. The third is people covered by a Compact of Free Association with Micronesia, the Marshall Islands, or Palau.
If your category is not one of these three, do not try to determine your eligibility from a short summary alone. Pennie has published a list of other lawfully present categories that will no longer qualify for financial savings starting in 2027. Review Pennie’s information and make sure your application includes current documentation so Pennie can assess your situation.
Financial savings and health coverage are not the same thing
This is the distinction to keep in mind: not qualifying for premium tax credits is not the same as being ineligible for Pennie coverage.
Lawfully present individuals who are not in one of the three groups above may still be able to purchase a Pennie plan, but would pay the full price without financial assistance. Your specific eligibility should be confirmed through Pennie using your current application information.
This can be a significant change for someone whose monthly budget depends on financial savings. Before making a decision about coverage, check whether the change affects you, find out what the full-price premium would be, and compare the available options.
Pennie is the only place to receive these federal premium tax credits. Pennie also says plans through the marketplace cover pre-existing conditions and free preventive services. If you do not qualify for Pennie coverage or financial savings, Pennie provides information about other health coverage and care options.
If household members have different circumstances
Some households include people with different immigration documentation or different eligibility circumstances. In that situation, do not assume that one person’s eligibility automatically determines the outcome for everyone in the household.
Household information matters when Pennie processes an application. Update your application with current information and immigration documentation so Pennie can review each person’s circumstances accurately. If you are unsure what to submit or how a change may affect your household’s application, ask Pennie or a qualified enrollment professional for guidance.
A separate change took effect in 2026
Pennie also notes a separate federal change that began in 2026. Individuals who are lawfully present but subject to the five-year Medicaid waiting period are no longer eligible for Pennie financial savings if their income is below a certain threshold.
This is separate from the 2027 change described above. Pennie’s notice does not specify the threshold in this summary, so do not rely on a guessed amount. If you think this rule may apply to you, seek help reviewing your circumstances and options.
Other Pennie changes to know about
Pennie highlights several additional changes that could affect enrollees. They are separate from the 2027 non-citizen premium tax credit rule, but may be important as you plan for coverage.
Report household income changes
Pennie says financial savings are based on household income. If income increases and you do not update your Pennie application, you may have to repay excess savings at tax time.
For example, Pennie describes a household that reported $35,000 in income and received about $593 per month in savings. If income later rose to $43,000, Pennie says the monthly savings would need to decrease to $481. In its example, if the change happened in July and was not reported, the household would owe approximately $670 at tax time.
Update your application when household income changes, including when a household member’s income changes even if that person is not enrolled through Pennie.
Medicaid changes beginning January 1, 2027
Pennie says some Medicaid recipients will need to meet work and community engagement requirements starting January 1, 2027. A person denied Medicaid for not meeting those requirements will not be eligible for financial savings through Pennie and would have access to full-price Pennie plans without financial help.
Starting January 1, 2027, some Medicaid recipients will also need to complete eligibility renewals every six months instead of every year. Pennie says that anyone who loses Medicaid mid-year due to an income increase can enroll in Pennie outside Open Enrollment.
Understand the broader cost picture
Enhanced federal tax credits expired on December 31, 2025. Pennie says the original premium tax credits remain available, and that four out of five Pennie enrollees qualify for tax credits. Pennie also reports that, on average, premiums doubled in 2026 for people who maintained coverage. Individual costs vary, so compare plans and confirm the amount you would pay.
What you can do now
Open Enrollment begins November 1 and ends January 15. Use this period to review your coverage, compare available plans, and confirm whether your household’s financial assistance is expected to change.
A practical checklist:
- Update your Pennie application when your income or immigration documentation changes.
- Read notices from Pennie and your insurance company so you don’t miss requests or information about your coverage.
- Review your eligibility for 2027 savings. If you are unsure whether one of the three categories applies, consult Pennie’s published list and ask for help.
- Shop and compare during Open Enrollment. Check both the plan’s premium and what the plan covers.
- Explore alternatives if you cannot receive savings. Pennie’s other health coverage and care options page outlines resources to consider, including coverage directly from an insurance company or through an employer.
If you are looking outside Pennie, compare carefully. Pennie cautions that some plans sold outside the marketplace may leave out important benefits. Review the coverage details before enrolling.
Get help reviewing your options
A change in financial assistance can raise practical questions about your coverage and household budget. At Total Benefit Solutions, we help individuals and families understand marketplace eligibility, review options inside and outside the marketplace, and consider what may fit their circumstances and budget. We serve clients regardless of background and explain the rules clearly and respectfully, at no cost to you.
Call (215) 355-2121 or visit www.totalbenefits.net to talk through your next steps.
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