For many of Hawaii's independent workers, the future looks uncertain as they prepare for a dramatic increase in health insurance premiums. This looming financial burden is poised to impact a wide range of professionals, from real estate agents and freelancers to gig workers and small business owners, all critical to Hawaii's economy. The expiration of enhanced tax credits, established under the American Rescue Plan Act of 2021, is a major factor driving the price hikes. This situation has led to concern and financial planning by many affected individuals and business owners.
Insurancenewsnet.com reports that the push to extend these tax credits has stalled in Congress, contributing to the uncertainty and leading to a potential government shutdown. The rising premiums are also influenced by increasing hospital costs, trade policies, and the growing use of expensive medications such as Ozempic. These factors are expected to drive up healthcare costs, with anticipated increases of over 10% for many residents.
The implications of these rising premiums are substantial. As KITV highlights, state leaders are concerned that many residents may be left without health insurance, creating difficult choices between healthcare and basic necessities such as food and rent. This situation could present an “existential crisis,” as stated by State Insurance Commissioner Scott Saiki. This could lead to a decline in healthcare access for a number of entrepreneurs and small business employees.
Several factors contribute to the rise in premiums. Hawaii Public Radio reports that the enhanced tax credits for ACA policies, which helped to make insurance more affordable, will expire at the start of 2026. This expiration is expected to cause premiums to potentially double for some individuals, putting immense pressure on business finances. The high costs could hurt small businesses, potentially triggering decisions such as cutting staff or raising service costs.
For independent professionals like Shelley Oates-Wilding, the former Olympian who runs an ocean sports nonprofit, navigating the complexities of healthcare is a constant challenge. The rising costs force Hawaii's small business owners to make tough choices, emphasizing the crucial need for stability and solutions within the healthcare system to help ensure business continuity.
