Expiration of ACA tax credits to hit small businesses across Pennsylvania

Many small business owners support permanently extending the ACA tax credits, according to a new report.

As Pennsylvanians face increased health care premiums with the expiration of the Affordable Care Act (ACA) tax credits at the end of this year, small business owners across the commonwealth and the country are worried about their companies. 

One such business owner is Walt Rowen, co-chair of Small Business for America’s Future and fourth-generation owner of the 115 year-old Susquehanna Glass Company in Lancaster County. 

“ In the past I have offered healthcare insurance for my employees when we were a little bit bigger, and it worked out well for the company,” Rowen told reporters at a press conference last week.

“As health insurance costs went up and as our company got a little bit smaller, I had to move away from offering health insurance but fortunately, the ACA had been passed and I was able to help my employees move into very affordable health insurance programs for them, which also then helped me as a business because now I have healthier employees that come to work.”

Republicans in Congress are refusing to extend these tax credits, which is the cause for the ongoing federal government shutdown that has lasted for more than five weeks. 

Rowan added, “ I have people that are looking at having health insurance now going up to be over $1,000. That is absolutely insane.”

A recent report from Small Business for America’s Future found that 87% of business owners polled want Congress to permanently extend the ACA tax credits. It also found that rising premiums would cause financial strain for more than a third of small business owners, and nearly a quarter of small business owners said they will have to drop health care coverage for themselves or their employees. 

According to the Center for Budget and Policy Priorities, there are roughly 101,000 small business owners and 63,000 self-employed workers in the commonwealth who rely on purchasing their health care through the ACA marketplace. If  Republicans allow these credits to expire at the end of the year, many of those small business owners will bear the brunt of the premium increases. 

Close to 500,000 Pennsylvanians purchased their health care through Pennie, the commonwealth’s ACA marketplace, in 2025 with 422,000 residents receiving subsidies to keep their premiums down. Pennie customers are facing an average 82% increase in premiums if these credits expire. 

“We are going to see a mass crisis for the people who are employed in the small businesses that make up 50% of America’s population and most of the communities in America,” Rowen warned.

“This financial blow is going to hit my company because I’ve got many employees that have been with me for 20, 30 years, and some of them are older employees. With the ACA tax subsidies, they were getting very good, affordable health insurance.  I’ve already seen one of my employees receive their change in subsidies, and there’s a 30% increase to that policy for that person. That just is not affordable to any of us.”