Health Insurance Dilemma for Small Business Owners Amid Subsidy Expiration
Deb Dauphinais finds herself at a crossroads, contemplating a decision she never anticipated: opting out of health insurance for the upcoming year.
As the co-owner of Bicycle East in Glastonbury, she has relied on Affordable Care Act (ACA) subsidies facilitated through Access Health CT to secure health insurance.
However, with these subsidies poised to expire at the end of the year, Dauphinais faces a staggering increase in her insurance premiums, projected to quadruple.
“It’s daunting; it’s not a situation I ever imagined we would encounter,” expressed Dauphinais regarding the severe possibility of relinquishing health coverage.
In Washington, U.S. Senate leaders indicated a potential vote in December, as certain Democrats reached an agreement on a funding bill aimed at reopening the federal government.
Yet, the absence of a set date for this vote, coupled with the reluctance of most Republicans to endorse an extension of these crucial subsidies, leaves Dauphinais and others in a precarious position.
For the current year, she noted that her premiums amount to approximately $7,000 for her and her husband, a figure that could leap to over $27,000 next year.
The existing plan also encompasses a $6,500 deductible per individual, raising the ominous possibility of incurring total medical expenses upwards of $40,000.
While both Dauphinais and her husband maintain good health, they are deliberating the option of forgoing insurance altogether and addressing any arising expenses out-of-pocket.
“It’s undeniably frightening; should we face $20,000 in medical bills, we’d be fine. Yet, it would be a significant issue. Many are in a far worse position than we are. It would require a serious accident or illness for us to consider this a loss,” she stated.
Previously, the couple provided a group insurance plan for their employees, but found the costs becoming prohibitive. They are now contemplating expanding their business by hiring a third employee early next year.
When Congress extended ACA subsidies, the couple discovered that purchasing individual plans proved more economical for themselves and their workforce.
Currently, however, the prospect of reinstating a group plan appears unfeasible due to soaring costs.
Even with the possibility of Senate approval to extend some or all of these subsidies, U.S. Rep. Mike Johnson (R-Speaker) expressed skepticism about endorsing any resolution that lacks comprehensive healthcare reforms.
“The Democrats created it, the Democrats broke it, the Democrats are driving the costs up,” asserted Johnson. “Who do you trust to rectify healthcare? It’s the Republican Party.”
In contrast, Democrats remain resolute in their stance that the subsidies deserve renewal. Senator Richard Blumenthal (D-Connecticut) contended that Republicans lack a viable reform strategy.
“Instead, they should be extending these tax credits, as they are essential for small business owners and moderate-income individuals who rely on them,” she remarked.
Low-income families will continue to receive subsidies for their insurance. The extended assistance has enabled many households to procure coverage through the ACA exchange.
Conversely, Republicans argue that the tax credits are unsustainable in the long run and have disproportionately benefited those earning above 400% of the federal poverty level.
Nevertheless, Dauphinais emphasized the significance of these subsidies for middle-class small business owners, highlighting that potential medical expenses of $40,000 could represent nearly half of their annual income.
“We’re managing, we’re meeting our obligations, but we are certainly not a large corporation with excess profits,” she concluded.
Source link: Nbcconnecticut.com.
