Pennsylvania Small Businesses Face Rising Health Insurance Premiums Amid Tax Credit Standoff

Health insurance premium increases have posed significant financial challenges for small business owners like Walt Rowen, owner of Susquehanna Glass, a century-old etching factory in Lancaster County, Pennsylvania.

For years, premiums rose by double-digit percentages, forcing businesses and employees to share rising costs. Relief was found through Pennie, Pennsylvania's insurance exchange established under the Affordable Care Act, bolstered by enhanced tax credits introduced during the pandemic, which made premiums more affordable for small business employees. However, the continuation of these tax credits is currently in jeopardy due to political disputes in Washington, D.C. The credits are tied to federal budget negotiations, with Democrats conditioning government reopening on their restoration and Republicans demanding government reopening first.

This uncertainty threatens a return to higher premiums for small businesses and their workers. Local business owners like Rowen are urging lawmakers, including Republican representatives who typically oppose the Affordable Care Act, to consider sustainable health subsidy proposals. Meanwhile, GOP lawmakers stress negotiations can only proceed once government operations resume, accusing Democrats of leveraging the situation politically.

The outcome of this standoff will significantly impact the affordability of health insurance premiums for small businesses and their employees, highlighting the ongoing tension between healthcare policy and federal government operations.