Pappas Joins Call for Speaker Johnson to Protect Small Businesses, Stop ACA Tax Credits from Expiring

Today Congressman Chris Pappas (NH-01) joined Congresswoman Nikki Budzinski (IL-13) and 107 House Democrats in a letter to Speaker Mike Johnson calling out the upcoming harm small businesses will face should the Affordable Care Act’s (ACA) enhanced premium tax credits expire. 

The lawmakers noted that small business owners, their employees, and self-employed Americans are disproportionately represented in the ACA marketplace. Although they make up only 16 percent of the workforce under the age of 65, they account for nearly half of marketplace enrollees. Furthermore, according to the U.S. Department of the Treasury, 82 percent of small business owners and self-employed individuals rely on the enhanced premium tax credits to afford their ACA Marketplace coverage.

“If the ACA’s enhanced premium tax credits are not immediately extended, families and small businesses will begin to feel the impact as soon as November 1st, when Open Enrollment begins and Marketplace plans reflect steep premium hikes in 2026,” the members wrote. “Premiums are currently projected to increase by about 114% starting in 2026. For many families and small businesses, this is money they do not have.”

In the letter, the members highlighted that allowing the ACA enhanced premium tax credits to expire would force small business owners to make difficult decisions about their healthcare, including paying hundreds more per month, dropping their coverage entirely, or even having to close their business in the face of this financial pressure. 

“By making insurance more expensive for small business owners and employees, Republicans are not only squeezing family budgets – they are stifling American innovation and undermining the economic growth that small businesses drive,” the lawmakers continued. 

The full text of the letter is HERE and below: 

The Honorable Mike Johnson

Speaker

U.S. House of Representatives

H-232, The Capitol

Washington, D.C. 20515

Dear Speaker Johnson:

We write today to underscore the urgent risks that the pending expiration of the Affordable Care Act’s (ACA) enhanced premium tax credits poses for small businesses, self-employed entrepreneurs, and employees of small businesses. Without immediate action to extend these tax credits, millions of small business households across the country will feel the burden of soaring ACA premiums.

While much of the public discussion focuses on the broader individual ACA Marketplace, the reality is that this market is also powered by small business households. People tied to small businesses – owners, self-employed workers, and employees of firms with fewer than 25 workers – are disproportionately represented in the ACA Marketplace. Although they comprise only about 16 percent of the overall workforce under age 65, they account for nearly half of marketplace enrollees.  In fact, according to the U.S. Department of the Treasury, 82 percent of small business owners and those who are self-employed rely on the enhanced premium tax credits to afford their ACA Marketplace coverage.

Treasury data also shows that 3.3 million small business owners and self-employed workers had Marketplace coverage in 20223, including nearly 300,000 entrepreneurs who would not have qualified for affordable Marketplace coverage without the enhanced premium tax credits.  Recent projections for 2025 show that over 4.2 million small business owners and almost 2.7 million self-employed workers currently benefit from ACA coverage. These figures represent significant gains in ACA coverage over recent years and highlight the importance of the premium tax credits for small business owners and their employees. 

If the ACA’s enhanced premium tax credits are not immediately extended, families and small businesses will begin to feel the impact as soon as November 1st, when Open Enrollment begins and Marketplace plans reflect steep premium hikes in 2026. Premiums are currently projected to increase by about 114% starting in 2026.  For many families and small businesses, this is money they do not have. As a result, projected job losses in non-health care jobs are projected to total over 180,000, with state GDPs declining by $40 billion. 

For the nearly half of Marketplace enrollees tied to small businesses, the fallout will be immediate: they will either pay hundreds more per month, drop their coverage entirely, or be forced to make difficult life decisions about their healthcare. This is all while small businesses continue to contribute to our economy. Between 2013 and 2023, small businesses contributed 55 percent of total jobs created. Republicans claim to stand with small businesses, but their refusal to extend the premium tax credits will halt this progress in job growth and force small businesses to cut jobs or close their businesses altogether as they lose access to affordable healthcare.  By making insurance more expensive for small business owners and employees, Republicans are not only squeezing family budgets – they are stifling American innovation and undermining the economic growth that small businesses drive.

We urge you to work with Democrats to end the shutdown by passing legislation that extends the ACA’s enhanced premium tax credits and continues to allow our small business community and self-employed Americans to benefit from affordable ACA Marketplace coverage.

Sincerely,

Background:

Leadership from Lamprey Health Care spoke about the burden of these increased costs with Pappas last month during a roundtable, where they shared that they have been notified by their health insurance provider that their annual premium is expected to increase by 40% next year. Pappas also visited a New Hampshire manufacturer expected to see a 38% increase in its health insurance costs next year as a result of political inaction in Congress. 

Pappas supports legislation that would prevent extreme increases in health care premiums next year by extending the enhanced premium tax credits that keep health insurance affordable for Granite Staters and small businesses.