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November 1st: Health Insurance 2025 Open Enrollment Begins
Premium Tax Credits that Have Unlocked Health Care Access for Millions Under the Affordable Care Act Are Due to Expire Next Year Unless Congress Acts to Renew Them
With Record-Breaking Growth of New Entrepreneurs, Now is the Time for New and Existing Small Business Owners and the American Public to Utilize Tools and Resources to Review and Select a Health Care Plan
WASHINGTON, D.C. – As the start of health insurance open enrollment approaches this Friday, November 1st, the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-business community, is urging millions of new and existing small business owners to take advantage of available tools and resources to choose the right health care plan. This year’s open enrollment is particularly significant, with a record number of new entrepreneurs expected to navigate the marketplace exchange for the very first time. The Medicare annual enrollment period has already begun and runs through December 7th.
While millions secure coverage for the upcoming year, there is concern over the future of premium tax credits that have made health care more affordable for many by unlocking access to coverage -- these credits are set to expire next year unless Congress takes action to renew them. If not, this will be the last health care season where they will be available and may jeopardize coverage for many.
“Our community has seen a record-breaking number of new entrepreneurs, and that means more individuals may be selecting and purchasing a new health care plan – on top of the millions of existing small business owners – for the very first time. Now is the time for small business owners, solo entrepreneurs and the American public to review available health care plan options, their budgets, and health care needs in order to select the best plan to meet their personal circumstance,” said Keith Hall, President and Chief Executive Officer of the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-business community. “All Americans who purchase health care on the exchanges, including the millions of self-employed small business owners, should start researching available plans now to be ready and select the right one by mid-December. The record-shattering number of new entrepreneurs who are now part of our country’s small business boom may be purchasing on the exchange for the first time and need to prepare to not be caught off guard, particularly given the rising health care costs that continue to be one of the primary challenges our community faces.”
Open enrollment begins on November 1st and runs through December 15th for coverage beginning on January 1, 2025
“As we approach the start of open enrollment season, this may be the last year small business owners may be able to take advantage of the premium tax credits available to them to help pay for health care coverage on the exchanges. These tax credits have been instrumental in helping unlock coverage for millions of individuals who have stepped out on their own to start their own small business. Unless Congress acts next year to renew these credits, this will be the last health care season available for small business owners to cover health care costs,” continued Hall.
During the summer, NASE released the findings of its national State of the Small Business Community survey of 681 small business owners comprised largely of NASE members and other small businesses from allied organizations. The survey, which was previewed in Politico Morning Money, asked self-employed individuals and small business owners to rate current conditions across areas including economic conditions, new technology advancements, public policy issues and retirement benefits, among others. Among the top challenges identified by those who took the survey, Health Care and Prescription Drug Costs, Taxes, and Inflation were the top three.
Over the last three years, there has been a record-breaking surge of over 19 million new small business applications to the Small Business Administration. A new rule published in the Federal Register and finalized in 2020 introduced changes to the Patient Protection and Affordable Care Act, the nation’s health care law, resulting in new benefit and payment parameters impacting America’s small business and self-employed community. Provisions of the rule impacting both current and future health care and Medicare beneficiaries affects eligibility, enrollment, and coverage details.
During Open Enrollment Season, small business owners and individuals can:
- Change medical and dental plans
- Add or remove dependents from coverage
- Enroll or re-enroll in Flexible Spending Arrangements (FSA)/Dependent Care Assistance Program (DCAP) for the next year
“As more Americans sign-up for health care coverage, America’s new and existing entrepreneurs may need a refresher about how these policies will impact them. Many of these policies strengthened the integrity of both federal and state-based health insurance exchanges. Overall, the new entrepreneurs of our American workforce now benefit from a more predictable regulatory environment, lower prescription drugs costs, and greater transparency. America’s health care law, the Affordable Care Act, has resulted in a skyrocketing number of individuals who have signed up for health care insurance and now have access to more enrollment options, hardship flexibility, and special enrollment options. There are resources out there available to you – from organizations like the NASE to healthcare.com to community associations ready to assist new and existing small businesses,” concluded Hall.
Important Tools and Resources:
Key Dates and Topics for Discussion:
- Health Care Insurance Open Enrollment Term: The period runs between November 1st through December 15th, 2024.
- Sign-Up Before December 15th to Begin Coverage January 1st, 2025: You must complete your new or renewal application before 11:59 p.m., Dec. 15th, for your health insurance coverage to begin Jan. 1, 2025. If you miss this deadline, you can still sign up for a Marketplace health plan until January 15th, 2025, where your coverage would not start until February 1st, 2025. After that, you must qualify for a special life event under the Special Enrollment Period.
- The HRA Rule is Still Available: In 2020, employers started offering a new health reimbursement arrangement (HRA) option to employees to purchase coverage in the individual market. Employers now offer this new HRA pursuant to a new rule finalized in June 2019 and in effect in 2020.
- Medicare Open Enrollment Term: The annual term already began on October 15th, and runs through December 7th. You can find more information here: https://www.cms.gov/files/document/2024-medicare-open-enrollment-fact-sheet.pdf
NASE was a major proponent of the new HRA rule and advocated on the issue for several years since the passage of the ACA and previous guidance restricting HRA use by small employers.
To Speak with Keith Hall, NASE president and CEO, please contact Kristofer Eisenla at [email protected]
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The National Association for the Self-Employed (NASE) is the nation's leading advocate and resource for the self-employed and micro-businesses, offering a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.
The NASE NextBizThing helps identify and connect our nation’s smallest businesses. Need small business help? Check out NASE’s Ask the Experts for advice or the NASE Minute for small business support.
The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org