Maine Business Owner Considers Dropping Health Insurance Amid Rising Costs

A small business owner in Thomaston, Maine, is contemplating dropping her health insurance due to sharply rising costs, compounded by the expiration of federal subsidies. Chloe Chalakani, who operates a handmade pasta business with her partner, faces a significant increase in her monthly premiums as she approaches the health insurance enrollment period.

Chalakani’s health insurance premium currently stands at $460 per month for a plan with the highest deductible. As the tourist season concludes and colder months set in, she is reassessing her options. The expiration of enhanced tax credits, which have helped keep costs manageable, is set for December, and she anticipates that her rates will increase. “I don’t plan to get insurance next year,” Chalakani stated. “I’m just not going to do it — I’ll pay out of pocket.”

The decision by younger individuals like Chalakani to forgo health insurance raises alarms among health policy experts. They worry that a significant drop in enrollment among younger, healthier people could destabilize the entire health insurance market. “Health insurance markets only function when there are many people pooling their resources — young and old, relatively healthy and not,” explained a health policy analyst.

Younger, healthier individuals often contribute more to the system than they withdraw, while older, sicker populations typically incur higher healthcare costs. This dynamic is crucial for maintaining a balanced insurance pool. Should many young people opt out, the risk is that only the most vulnerable will remain insured, leading to soaring premiums. “If you only have sick people buying health insurance plans, then the average cost of that plan is going to be very high,” the analyst continued.

Chalakani’s situation reflects a broader trend as many individuals across the United States grapple with the financial implications of healthcare coverage. According to reports, approximately 24 million Americans obtain their insurance through the Affordable Care Act (ACA), and they may face significant ‘sticker shock’ when they log in to explore plans for 2026. Without swift action from Congress to extend the enhanced subsidies, many may find themselves priced out of necessary coverage.

The potential shift away from health insurance is concerning, not just for those who become uninsured but also for hospitals and healthcare providers. Increased numbers of uninsured patients can lead to financial strain on healthcare facilities, which may ultimately affect the quality and availability of services. For example, hospitals may be forced to close certain departments or reduce their service offerings as they attempt to navigate the financial challenges posed by a rise in uninsured patients.

Chalakani acknowledges the risks associated with her decision, recognizing that unexpected health issues could arise. “Should a catastrophe happen, I’ll probably say, ‘Wow, I should have had insurance,'” she remarked. Yet, she feels that her financial situation does not allow her to plan for such contingencies at this time.

The looming cuts to Medicaid and other healthcare programs further complicate the landscape. As fewer people are able to afford insurance, the ripple effects could extend beyond individual health outcomes, impacting the overall healthcare system.

Chalakani’s case exemplifies the difficult choices many small business owners face in the current health insurance climate. “If lawmakers do overcome the impasse and extend the enhanced subsidies so my premiums stay about the same, I might reconsider my plan to go without health insurance in 2026,” she added, expressing a glimmer of hope amid ongoing uncertainty.

As the health insurance enrollment season approaches, many like Chalakani will be weighing their options carefully, with the outcomes potentially reshaping the healthcare landscape for years to come.