At the end of 2025, enhanced premium tax credits under the Affordable Care Act expired. As a result, hundreds of thousands of Americans are now uninsured. Right here in Pennsylvania, over 130,000 enrollees on our state health insurance exchange, PENNIE, have dropped their health plan for 2026, with more expected to make this difficult choice in the coming months.

With no federal solution in sight, it’s time that we act on the state level to address this crisis. Many of those who are uninsured are employees of small businesses that cannot afford to provide group health insurance policies. Under the Affordable Care Act, employers can help their employees obtain health insurance in a tax advantaged way using a health reimbursement arrangement. In such an arrangement, an employer provides a fixed amount of money that can be used to buy health insurance that is not counted as taxable income. The federal government has created incentives for states to support health reimbursement arrangements.

For these reasons I will soon introduce a Senate companion to a bill that will be introduced in the House by Representatives Jen Mazzocco, Arvind Venkat, and Steve Samuelson. This legislation will establish a tax credit for small businesses (those with 50 or fewer employees) who contribute toward their employees’ health insurance premiums through a health reimbursement arrangement for insurance purchased through PENNIE. The legislation includes important safeguards related to the quality of health insurance purchased. This proposal mirrors laws already enacted or under consideration in Indiana, Mississippi, Ohio, Connecticut, and Arizona, among others.

The issue of health care affordability is a complex one, and it requires a multi-pronged approach. This is one step we can take to help more Pennsylvania families obtain high-quality health coverage that fits into their budget. Please join me in co-sponsoring this important legislation.