# Small Business



The return of the ACA subsidy cliff and how to get around it

Jon Muller is a semi-retired policy analyst and entrepreneur.

The Inflation Reduction Act (IRA), which Democrats in Congress approved and President Joe Biden signed in 2022, eliminated the subsidy cliff for health insurance purchased through the Affordable Care Act exchanges through 2025. It used to be the case that your ACA health insurance subsidy disappeared with the first dollar earned over 400 percent of the Federal Poverty Level (FPL).

Unless Congress acts to continue this provision of the IRA, the subsidy cliff will return in January. Thus far, Republicans in Congress show no interest in extending the enhanced subsidies for ACA health insurance plans.

The FPL in 2025 is $15,650 for a single person and $21,150 for a married couple. Thus, 400 percent of FPL is $62,600 and $84,600, respectively. A single person earning $62,600 currently pays $434/month on the Exchange for a Silver Plan. The married couple at 400 percent of FPL pays $599. The FPL increases with each dependent.

Under current law, a 60-year-old single person making just one extra dollar, or $62,601, experiences a rate increase of less than 1 penny/month. When the subsidy cliff returns in January, those premiums will go to $870/month, or an additional $5,119/year. For a 60-year-old married couple earning $1 more, the monthly premium will increase to $1,512, an annual hit of $10,953. These estimates are based on average rates for non-smoker 60-year-olds in Iowa. The increases could be more or less depending on other factors, including geography, age, and smoking status.

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Small Business Support for Clean Energy A Key to 2010 Elections?

Yesterday’s Democratic Senate caucus meeting – combined with Majority Leader Reid’s push on this issue, combined with President Obama’s leadership, combined with a clear demand by the public for action – has given comprehensive clean energy and climate legislation a major boost as we head towards the 4th of July recess. Clearly, at this point, there’s a better path to 60 votes in the U.S. Senate for comprehensive clean energy and climate legislation than ever before. We are that close to making history, let’s make sure we seize this moment!

With all that in mind, a recent national survey by Al Quinlan of Greenburg Quinlan Rosner Research has potentially powerful implications for the 2010 elections, providing yet more evidence that climate legislation – despite a fallacious “mainstream media” narrative arguing otherwise – is actually good politics. The key findings are threefold (note: the document talks about strategy for the Democratic Party, but could apply to Republicans as well):

  1. Small businesses “are among America’s most popular entities,” with an eye-popping 44:1 favorable to unfavorable ratio (“the highest we have ever seen in our polling on any topic”)
  2. Generating support from small business owners, for either political party, is a key to success in the upcoming mid-term elections.
  3. Small business owners strongly agree “that a move to clean energy will help restart the economy and lead to job creation by small businesses.” In fact, according to Greenburg Quinlan, “One of the most surprising findings of the survey is that despite the fact that nearly two thirds of business owners believe it would increase costs for their businesses, a majority still want to move forward on clean energy and climate policy.”

As if that’s not evidence enough that there’s broad support out there for comprehensive, clean energy and climate legislation, how about this Benenson Survey Group survey, conducted in late May/early June 2010? The key findings of this poll are:

  • 65% of “likely 2010 voters” believe that “the federal government should invest much more than it currently invests [or] somewhat more than it currently invests .”
  • 63% of “likely 2010 voters” support an energy bill that would “limit pollution, invest in domestic energy sources and encourage companies to use and develop clean energy…in part by charging energy companies for carbon pollution in electricity or fuels like gas.”
  • Among “undecided voters,” “62% support the bill and just 21% oppose.”

There is also strong evidence from this polling that voters – including independent voters by a 2.5:1 margin – are strongly inclined, by around a 2:1 margin, to be “more likely to re-elect” their Senator if he or she voted for a strong, comprehensive, clean energy and climate bill.

In sum, solid majorities of small businesspeople and the public at large both support comprehensive, clean energy and climate legislation. Which is why, once again – as we pointed out yesterday – the “mainstream media” narrative, that voting for limits on carbon pollution is bad politics, is just dead wrong. To the contrary, victory this November could go to the candidates – and the party – that seizes this issue and makes it their own. Ideally, it would be great to see both Republicans and Democrats fighting to be the “greenest” candidate, and not just in terms of how much money they raise.

UPDATE: Add another poll to the list, this one by WSJ-NBC indicating that “Respondents favored comprehensive energy and carbon pollution reduction legislation by 63 percent to 31 percent – a two to one margin.”

If BlueDogs Really Cared About Rural Healthcare...

Crossposted from Hillbilly Report.

The Blue Dogs that have fallen in with Mitch McConnell and the Insurance lobby in opposing a Public Option have said that they worry about health coverage in rural areas. They maintain their position comes from worry about small businesses and and rural areas. However, if they really cared about the problems in rural America, their position would be quite different.

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