Copyright Inc. Magazine
Negotiations are dragging on in Congress and lawmakers will meet once more to vote to reopen the government. But nothing is a given. Inc. spoke with the Congresswoman to get the latest on the shutdown and where lawmakers go from here. Melissa Angell: We’re now in the longest government shutdown in U.S. history. Let’s start off with what’s at stake here for small businesses with health insurance. Nikki Budzinski : There’s a lot at stake. The ACA premium tax credits basically offer 3.3 million small business owners access to [Obamacare] Marketplace coverage. I think more small businesses will lose their ability to provide health insurance as easily to their employees. When people go uninsured, that means that individuals are not going to continue to get access to things like preventative health care, and we know that preventative care can head off chronic disease, or help people manage chronic disease. Small businesses operate on fairly thin margins. If the enhanced credits do lapse, what are the immediate financial decisions small business owners face? We understand that there could potentially be an increase of about 114 percent in premiums by 2026 for small businesses if these tax credits expire. And like I said, 3.3 million small businesses across the country utilize these tax credits in order to make health insurance affordable for them and their employees. It’s why we led a letter to Speaker Johnson and got a very strong response from the House Democratic Caucus, with 108 members signing on to the letter urging [Speaker of the House Mike] Johnson to take into account the voices of small businesses in this country, Affordability is certainly the main challenge here. But what are the other impacts that you see hitting companies if these premiums do skyrocket? I’m wondering about hiring, innovation, company closures. I think that eliminating the ability for a small business employer to offer insurance through the marketplace will de-incentivize or maybe potentially create even more pressures around full staffing. What are you hearing from your constituents right now? I’m hearing panic about the sky-rocketing premiums. On November 1, that’s the day the enrollment for the ACA opens. So for small business owners that might have been logging on on November 1 to shop around for a more affordable plan, they’re going to see an across the board increase in in these premium costs. You mentioned you led a letter advocating for the preservation of these tax credits that received support from 108 House Democrats. But there are 213 Democrats in the House; Why don’t you think it received even more support? First of all, with 108, when you look at any letter, that’s actually a good majority of our caucus, which I think is positive. I also think there’s an urgency to this topic. So I couldn’t keep the letter open indefinitely. Have you heard anything from the Speaker since sending the letter? We have not yet gotten a response. What would you say is the strategy here to bring Republicans to the table? Small businesses are probably one of the most bipartisan topics there is. This is a very bipartisan issue, and so I think I’m hoping that by leading this letter, we’re drawing more attention to the pain points and the impact of these ACA premium tax credits, not just for the speaker, but for the Republican House conference. That this is going to have broader implications than just the individual impact. This could cripple our small businesses. At this point in time, where is Congress on negotiations? Have there been any signs of progress? It seems like there have been more conversations happening in the Senate on a bipartisan basis that can be encouraging, but I will say that for those of us in the House, including myself, I’m not going to be able to support a deal that leaves any working people behind. It’s the importance of addressing these increased costs–these skyrocketing health care premiums — I need to see that be a part of any deal to reopen the government. To go even further, what are explicit non-negotiables for you? It’s getting at the cost issue. Republicans have a variety of different options. Extending the ACA tax credits is just one. The[y] also cut Medicaid by a trillion dollars. My district is very rural, the impacts of that to our rural health care system could potentially be very devastating. In terms of the actual calculus behind the request here in preserving the credits, what is the ideal figure that you and your colleagues are seeking? That is a big part of the negotiation. We’re asking for an extension. Is that for a year? Is that for three years? There are some that might say permanent. These are the different negotiating points when Democrats and Republicans are at the table. Out of those options you listed, which one are you really vouching for? Well, I would just say, I’m open. There needs to be an extension, and so I’m open to those negotiations. If Congress continues to stall here and the shutdown drags on, I’ve heard murmurs this could go into next year, potentially. Is there a point of no return for these premiums come 2026? I would say this: I think they technically do expire on December 31 of 2025. I am very hopeful that we are going to get to a resolution on this government shutdown. I hope that’s today. So I really would hate to see us drag this out that long. This interview has been edited for length and clarity.
