New Hampshire Manufacturer Faces Steep Health Premium Hike
Imagine coming to work one day to find out your company’s health insurance premiums are going to skyrocket by 38% next year. That’s the harsh reality facing W.H. Bagshaw, a renowned metal parts manufacturer in Hudson, New Hampshire. They’re caught in a financial crossroads due to the expiration of Affordable Care Act (ACA) tax credits.
The Impact of ACA Expiration
With ACA tax credits set to disappear in December, companies like W.H. Bagshaw are bracing for financial strain. Nearly 50,000 individuals in New Hampshire have been benefitting from these credits in 2025, as per the Centers for Medicare and Medicaid Services. This expiration is causing waves far beyond individual policies.
Senate Democrats have been adamant about not passing any budget that doesn’t extend the tax credits. However, with Republicans holding slim majorities, the impasse led to a government shutdown starting October 1. According to Valley News, this deadlock directly affects companies nationwide, not just individuals.
A Company’s Commitment to Its People
W.H. Bagshaw, owned by Aaron and Adria Bagshaw, takes pride in offering 100% insurance coverage for its 32 employees. “It’s part of our core values,” says Adria Bagshaw, opposed to shifting costs onto employees. However, this generous benefit comes at a hefty cost, especially with impending premium rises.
The firm recently relocated to Hudson, optimizing operations, but now faces an additional burden. Adria Bagshaw states, “Pushing costs onto our employees isn’t an option. It’s akin to cutting their salary.” They hope to find a workable solution through broker meetings.
Balancing Business and Employee Welfare
Financial analyst predictions suggest that significant premium rises will prompt healthy individuals to drop coverage, destabilizing markets further. The ripple effects on companies like W.H. Bagshaw are real and troubling.
U.S. Rep. Chris Pappas highlights this, remembering historical premium hikes of 10-15%, never near 40%. “The ripple effects of eliminating these tax credits are severe,” says Pappas, stressing bipartisan solutions to alleviate staff sufferings and business ramifications.
Seeking a Way Forward
Amidst these challenges, solutions are sought to safeguard employee benefits while maintaining business viability. Let’s hope innovative policy solutions emerge to cushion such unsettling economic ripples.
