ACA Marketplace Enrollment Opens, Higher Premiums Loom for Many Iowans
This month marks the start of open enrollment for the Affordable Care Act Marketplace. However, many residents of Iowa will face much higher premiums as the federal enhanced tax subsidies are set to expire at the end of the year.
Life Changes and Business Operations in Iowa
About seven years ago, Beth Hoffman and her partner John moved from San Francisco to southern Iowa’s Monroe County. They purchased 40 acres near John’s parents and established Whippoorwill Creek Farm.
“We do all sorts of agritourism kinds of things. We do cooking classes, writing classes, because I'm a writer, and overnight stays [through] Airbnb.”
Health Insurance Challenges for Small Business Owners
Because they run a small business and work freelance, Hoffman and John rely on the ACA Marketplace for health insurance. Currently, they pay roughly $200 per month for a bronze plan.
“It's basically catastrophic coverage. So we have a $7,000 deductible — I believe — each.”
To maintain this plan next year, their premium will increase to about $300 per month. But if their income rises, costs could jump dramatically.
Income Threshold Impact
The couple earns nearly 400% of the federal poverty level. With the end of federal enhanced ACA tax credits, exceeding that threshold could cause their insurance premiums to increase sharply.
If their income rises by $10,000 next year, their monthly premium could soar to almost $1,400.
Author's Summary
Many Iowans, including small business owners relying on ACA plans, face steep premium hikes after federal subsidies end, risking loss of affordable coverage with income growth.