Small Business Owners in Alaska Dealing With Rising Healthcare Costs

(small.news) — Despite the government shutdown ending, the Affordable Care Act subsidies are set to expire at the end of 2025. Now, Alaskan small business owners are forced to re-budget for rising health insurance costs.

According to Anchorage Daily News, some small business owners in the state say that their premiums could triple with the upcoming expiration of the enhanced premium tax credits.

Brie Loidolt owns an Anchorage bookkeeping business and told the outlet that her premium could increase by hundreds of dollars each month. “We’re working tooth and nail every day to make our way so we don’t have to rely on any help and assistance.”

Loidolt believes that Congress is “punishing us for being small business owners,” and has even considered closing her business due to the potential rising costs.

Government Shutdown Ends With No Deal On Healthcare Subsidies

The extension of the enhanced tax credits was a priority for Democrats in the Senate, which led to the longest government shutdown in the country’s history. However, when the shutdown ended, there was no deal made on extending those tax credits.

Congress has until the end of 2025 to extend those credits, or they will expire. Senator Lisa Murkowski for Alaska said she wants these credits to extend, according to Anchorage Daily News. Senator Dan Sullivan also supports the extension. However, Alaska’s Representative, Nick Begich, hasn’t said if he supports those tax credits extending.

The shutdown did include a promise from the Senate majority leader to hold a vote on these extensions before the end of 2025, but Open Enrollment season is already ongoing.

‘I Feel Absolutely Abandoned’: Alaska Small Business Owner

Mark Robokoff, the owner of a pet supply store in Anchorage, said his health insurance costs could increase by 300% without the tax credit extensions. “I need my government, specifically my congressional delegation, to speak for me concerning the levers of power in this country, and I feel absolutely abandoned.”

The overall impact of these extensions ending will depend on a small business owner’s income, age, and family size. Of the around 25,000 Alaskans enrolled in an Affordable Care Act plan, many who will see the largest increases will be small business owners.

Robokoff said that his monthly premium, which covers him and his partner, will go from $924 in 2025 to $2,886 in 2026. “This will pull the rug out from under me. I thought I was doing the things that a society wants its members to do—create new businesses, create new jobs, improve the life of the surrounding community.”

He told the outlet that, when he was younger, he just went without health insurance. However, now he takes medicine that would cost thousands of dollars each month without insurance coverage.

Small Business Owners Might Need To Make Changes

Robokoff is another small business owner who said he might need to make changes to his business because of these changes. “It’s an entirely new calculus. Everything is going to have to be looked at, from the prices I pay for merchandise, the quality that I try to stock, the amount that I pay my employees to keep the best ones—every single aspect of the store is going to have to be re-examined.”

Loidolt, whose accounting firm employs four people, said her premiums are about to go up around $500 per month if the subsidies expire. She already pays $1,347 per month, and if that monthly cost rises, she will be paying more for her health insurance than her mortgage.

“Who can afford to live when 30% of everything you bring in just pays for insurance and deductible?” Loidolt tried purchasing a company plan for her small business, but insurance companies allegedly don’t typically offer plans to businesses in Alaska that have fewer than five employees.

“So our hands are kind of tied there, too. It’s not like we have options and we’re choosing this more expensive option through the marketplace,” she explained.

Health Insurance Costs Could Lead To Small Businesses Closing

Loidolt, who recently had an accident that led to ongoing medical needs, said she might have to shut down her small business and lay off employees. This would lead to around 40 small businesses losing access to her accounting services.

Loidolt told Anchorage Daily News she could get a job with a salary and benefits, but closing her small business would be “heartbreaking.” She said, “I feel like we’re part of the solution, and this is going to make us part of the problem. We’re the people that are actually paying our bills every month. We’re not on assistance. We’re making it work, even with these ridiculous prices.”

She continued, saying, “We’re offering jobs with small companies. We’re offering competition to people so that the monopolies don’t take over. And they’re just going to cut us at the knees.”