main news story
Iowa Small Businesses Get Lifeline with ACA Credit Extension

September 23, 2022 10:58am

Average Affordable Care Act premiums in Iowa would have 72-percent higher this year without temporary subsidies from the federal government.

Small business advocates say a new extension is a big help when smaller firms trying to get back on their financial feet. The Inflation Reduction Act includes a provision that extends the A-C-A’s premium subsidies through 2025. The extra tax credits are from an earlier pandemic relief package and were set to run though this year.

David Chase with Small Business Majority says the extension removes a lot of headaches during a complicated time for owners of smaller operations...(audio clip below  :11 )

Chase says since its inception, the Affordable Care Act has been a game-changer for small businesses but acknowledges owners still face challenges. He says health-care costs continue to rise, with one recent analysis noting marketplace insurers were already proposing premium hikes for 2023. Policy experts say the subsidy extension will help buffer those higher expenses.

Shawn Phetteplace is the Midwest regional manager for the Main Street Alliance. He says any help small businesses can get to keep costs lower is important, since many owners are already at a disadvantage right now in the fierce competition for workers...(audio clip below  :12 )

The Inflation Reduction Act also will allow Medicare to negotiate some drug prices. Analysts say that could also help small business owners in the future, because skyrocketing prices have made it harder to select a plan to offer to their staff.

(credit to Iowa News Service)