Alaska's Small Businesses Face Health Insurance Crisis

Alaska's small business owners are in a tough spot. Health insurance costs are going up significantly as special government help, called premium tax credits, is ending soon. Without this assistance, many small businesses might struggle to stay open.

The Impact on Business Owners

Some business owners, like Brie Loidolt, are seeing their insurance costs increase by hundreds of dollars each month. Loidolt runs a bookkeeping business in Anchorage. She works hard to keep her business running without additional help, but with these substantial increases, she might have to close her business.

Congress has until the end of the year to extend these tax credits, but so far, they have not taken significant action. Some senators, like Lisa Murkowski and Dan Sullivan, support extending the credits, while others, like Rep. Nick Begich, have remained silent on the issue.

The impact of these changes varies based on factors like income, age, and family size. For example, Mark Robokoff, who owns a pet supply shop, is facing a dramatic increase. His monthly insurance premium is set to triple, rising from $924 to $2,886. He says this will make it extremely difficult to keep his business running.

Loidolt is also facing substantial increases. Her premiums are set to go up by about $500 per month. She already pays $1,347 per month for insurance. Without the tax credits, she will be paying more for insurance than she does for her mortgage.

Nan Schleusner, a human resources consultant, is also affected. She and her husband have relied on insurance purchased through the Affordable Care Act, but now they are facing huge increases. Schleusner says she might have to ask some of the companies she consults for to become their employee so she can join their insurance plan.

The Struggle of Small Business Owners

These business owners feel like they are being punished for running small businesses. They say they are doing what society wants—creating jobs and improving their communities. But with these significant increases in health insurance costs, they might have to make some tough decisions.