Small businesses could be hit with higher healthcare costs next year as premiums for those covered under Affordable Care Act health insurance plans are set to rise.
People operating small businesses with 50 or fewer full-time employees, some of which are enrolled in the Small Business Health Options Program under the ACA, could be put at a disadvantage with the premium hikes as they lack the resources to bargain with health insurers.
TEXAS JUDGE RULES ACA COVERAGE OF HIV PREVENTION DRUGS VIOLATES RELIGIOUS FREEDOM
Insurers within the ACA marketplace are proposing median monthly premium increases of 10%, citing increased labor and supplies costs, according to a recent analysis from Kaiser Family Foundation. The analysis surveyed proposals made by 72 insurers across 13 states and Washington, D.C.
The proposed increases made to state regulators may vary and change, as they still need to be finalized and approved, a process that is not expected to be completed until October.
Health insurers that operate in the small group market, which caters to employers with 50 or fewer employees, have proposed rate increases ranging from 2% to 15% in Minnesota, according to state data.
Bob Jennings, CEO of 3D Color, a Cincinnati-based company with 21 employees, told the Wall Street Journal that he expected his rates to go up by 14% to 23%, which will force him to pass some of those costs on to his employees in order to continue affording to offer healthcare benefits.
One program in Maine has worked to reduce the burden of health insurance costs for small businesses by reducing health insurance premiums for participating small businesses. So far, the Small Business Health Insurance Premium Relief Program has saved $20 million in health insurance costs for businesses and employers in Maine between November 2021 and August 2022, according to a release by Maine Gov. Janet Mills.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Meanwhile, most people enrolled in plans under the ACA will likely not see a huge effect as the recently enacted Inflation Reduction Act extends premium subsidies for those who earn more than four times the federal poverty level, roughly $54,000 for a person, through 2025.
