Alaskans Face Rising Health Insurance Costs Without Subsidy Extension
Many Alaskans relying on the Affordable Care Act Marketplace are about to see their health insurance premiums soar unless a subsidy set to expire at year-end gets extended. This situation has raised serious concerns among residents.
Business owners are particularly anxious about the potential fallout from the expiration of these enhanced tax credits. Some estimate their insurance costs could triple compared to last year, threatening their ability to operate sustainably. Bree Lloydult, who runs a bookkeeping firm in Anchorage, expressed frustration over the challenges they face. “We strive to be self-sufficient,” she shared.
Roedort, another small business owner, shared a similar sentiment, indicating that he might have to close his business if health insurance premiums rise too high. The need for tax credit extensions was emphasized by Senate Democrats during the lengthy government shutdown, which recently ended without a resolution on health subsidy extensions.
Lawmakers must decide whether to extend the credits enacted in 2022 or let them lapse. Sen. Lisa Murkowski and Sen. Dan Sullivan, both from Alaska, have voiced their support for a temporary extension to mitigate steep cost increases, while U.S. Rep. Nick Begich has yet to articulate a position on the matter.
The shutdown deal included a commitment for the Senate majority leader to address the extension by the year’s close, but Alaskans are already making decisions regarding coverage in 2026. They feel that Congressional action couldn’t come soon enough.
Mark Robokoff, who owns a pet supply store in Anchorage, expressed feelings of abandonment regarding the lack of support from lawmakers. His insurance premiums have reportedly shot up over 300%, forcing him to reconsider his business strategy.
The impact of the subsidy expiration will differ based on income, age, and family size, with the most significant increases likely hitting older Alaskans earning above 401% of the poverty line. Among the estimated 25,000 Alaskans enrolled in ACA plans, many are small business owners whose contributions are crucial to the state’s economy.
“New Calculus for Business”
Robokoff noted that his premiums will rise from $924 to $2,886 monthly in 2025. “This just pulls the rug out from under me,” he lamented, highlighting the pressure to create jobs and contribute to community welfare.
Although he once lacked insurance, he now relies on costly medications and sees no way to eliminate his health coverage. Rising premiums are forcing him to reconsider every aspect of his business model, from product pricing to employee compensation.
Robokoff initially hoped Congress would step in to help, thinking that the severity of the situation would compel action. However, that hope is dwindling, he said.
“A Financial Burden”
Mr. Lloydult, who operates an accounting office with four staff, anticipates that without the subsidy, his monthly insurance costs will spike by around $500. As it stands, he’s already paying $1,347 monthly, and losing the subsidy might make his premiums exceed his mortgage payments.
“Who can survive if 30 percent of their income vanishes to insurance?” he questioned. Attempting to explore company plans, he discovered that options for businesses with fewer than five employees are practically nonexistent, leaving him feeling trapped.
After a recent medical incident resulted in significant costs, he acknowledged that eliminating insurance isn’t a possibility. As premium rates rise, closing his business, laying off employees, and discontinuing services to numerous clients is weighing heavily on his mind. While considering a job with benefits may be an option, it would be heart-wrenching to abandon what he has built.
“We feel like part of the solution, yet this makes us part of the problem,” he explained, emphasizing the paradoxical situation in which small businesses find themselves.
“Feeling Overwhelmed”
Nan Schleusner, a self-employed human resources consultant in Anchorage, shared that she and her husband have depended on ACA insurance since the enhanced credits were introduced. These credits significantly improved affordability, especially as they faced health challenges.
In 2022, a cancer diagnosis made her especially grateful for the insurance. The enhanced premium tax credits alleviated substantial medical costs, giving them some peace of mind. However, now, her family could be faced with a staggering $37,000 annual premium and a $15,000 deductible on the cheapest available plan.
Considering asking her consulting clients to shift to employeed-based insurance, she remains committed to her work despite the challenges. This year, she’s paid $1,380 monthly in premiums, but next year’s costs could exceed $52,000, leaving her feeling distressed. “Every time I see those numbers, it’s overwhelming,” she confessed.
Schleusner questioned the rationale behind such exorbitant insurance costs, remarking, “What in the world is making it so expensive?”
