Health insurance premiums offered under the Affordable Care Act (ACA), colloquially known as Obamacare, will rise next year, hitting small businesses particularly hard and potentially pressuring them to drop out of the program.
While recent provisions in the Inflation Reduction Act have provided additional subsidies for individual consumers that will likely offset the increased cost of premiums, no such support was granted to small business owners, according to the Wall Street Journal. Insurers are proposing median premium increases of 10%, but some are proposing increases as high as 20%.
As Democrats head into the November midterms with historically low approval ratings, another major factor could arise that will further contribute to the shrinking of their already-slim majorities.
As reported by The Hill, the Affordable Care Act – known colloquially as “Obamacare” – could face a significant increase in premiums due to a lapse in special funding provided by the coronavirus aid bill passed last year. That bill, known as the American Rescue Plan, temporarily increased financial assistance for Americans seeking healthcare through Obamacare; the increase was set to expire just one year after the bill’s passage.