Democrats sacrifice small businesses at health insurance industry altar

Friday marks the end of a 12-year streak of on-time monthly jobs reports. That might be the smallest casualty of the Schumer shutdown. Basic government operations and the small businesses that depend on them are stalled indefinitely. According to the Congressional Budget Office, the cost of the shutdown is roughly $400 million a day in furloughs alone.

The reason for this shutdown pain: Senate Democrats want to extend elevated taxpayer payoffs to their health insurance industry donors.

The pandemic-era boost to Affordable Care Act subsidies that expands benefits above 400% of the poverty line ceiling is finally set to expire. Yet nothing is as permanent as a temporary government program, and Democrats are shutting down the government in an effort to make this corporate welfare permanent.

Expanded ACA subsidies aren’t needed. Approximately 40% of those in fully subsidized ACA plans had zero claims in 2024. That means taxpayers are paying premiums for healthy individuals who don’t require care. Most of the expansion population who do need care could get insurance through their employer. Families earning $500,000 a year shouldn’t demand their neighbor pay for their coverage.

So why are Democrats going to the extraordinary step of shutting down the government? Because the insurance companies writing campaign checks are demanding it to keep the taxpayer spigot open.

In the last election cycle alone, Democrats received tens of millions in direct contributions and indirect support from the health insurance lobby. Now, health insurers want a return on their political investment to ensure they receive the half trillion dollars in revenues that expanded subsidies represent.

Health insurers are arguably the most powerful lobby in the country. The top five largest insurers are among the 23 biggest companies in the country, according to the Fortune 500. Since the Treasury Department directly transfers funds to health insurers, they are the poster child of American cronyism — juicing their earnings and stock prices on the backs of hardworking families and small businesses.

Enormous health insurance subsidies also prevent real healthcare reform from occurring. When taxpayers foot the bill for premiums, insurers can charge higher rates without worrying about affordability. Only when Americans pay for care and coverage directly can the market work to bring costs down. Republicans are right to let them die.

By doing the bidding of health insurers and shutting down the government, Democrats are damaging small businesses. As Small Business Administration Chief Kelly Loeffler points out, the shutdown means that record SBA funding for entrepreneurs is frozen. Approximately 300 small businesses per week are seeing their funding grind to a halt. For many entrepreneurs, this means shelving dreams, delaying hiring, or even closing up shop.

This is what Democrat dysfunction really looks like. While small businesses can’t get the loans they desperately need to stay afloat, Democrats do the bidding of special interests. While entrepreneurs and workers worry about payroll, Democrats are obsessed with ensuring health insurance companies keep rolling in taxpayer dough.

One silver lining of the shutdown is that it’s exposing Democrats’ loyalty to corporate America at the expense of small businesses.

Alfredo Ortiz is CEO of Job Creators Network, author of “The Real Race Revolutionaries,” and co-host of the Main Street Matters podcast.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

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