What Is a Government Shutdown?

Which Subsidies or Programs Are At Risk — and Why It Matters

• The Affordable Care Act marketplace tax credits and premium subsidies are politically contested in the current budget impasse. 
• If those tax credits aren’t extended, premiums could rise and coverage become less affordable for individuals who rely on those subsidies. 
• Many programs that support workforce training, employment services and state-federal grant programs can be disrupted. 

• Some employees may rely on marketplace coverage (rather than an employer-sponsored plan) — if the subsidies shrink, their premiums go up, leaving them more financially stressed.
• When employees are stressed about their benefits, insurance or health coverage, it can affect morale, productivity and even retention.
• As a benefits broker focused on small employers, you’re in a position to lead by offering clarity, reassurance and options.

Impacts on Employers, Staff & Business Operations

For you and your business:

• If your business holds any contracts with federal agencies (even indirectly via sub-contracts), you may see delays, pauses or uncertainty in payment.
• Regulatory approvals, permitting or other government interactions may be delayed — prolonging hiring, expansion or compliance work.
• Employees may begin to ask questions: “What happens if benefits are delayed?” “Will my premium go up?” As owner/leaders you’ll need to provide reassurance.

For your employees:

• Furloughs or unpaid federal workers affect local economies, which can indirectly impact small business employees (less consumer spending, less local economic activity).
• If health or benefit subsidies are in limbo, employees may delay care, feel anxious, or be distracted — all of which can affect morale and performance.
• Feeling of uncertainty: When the “safety net” (government programs) feels unstable, employees often look to you as employer to provide stability. That’s an opportunity.

Why Morale & Culture Matter Now

• Trust builds retention. When your team sees you proactively addressing questions and offering clarity in uncertain times, it reinforces loyalty.
• Anxiety eats engagement. If employees are worried about benefits or coverage disruptions, they’re less present, less focused and more likely to consider other offers.
• Small-business advantage. Unlike large corporations, small employers can be more nimble, personal and responsive. That gives you a chance to stand out.
• Reflecting your values. Given your commitment to helping businesses, employees and the Lord’s calling on your life — offering steady, honest communication now aligns with how you serve.

What You Can Do Right Now (Action Steps for Employers)

Communicate proactively with your team.

• Send a brief update: “Here’s what we know about the government situation and how it might affect benefits/subsidies.”
• Invite questions: “If you rely on a marketplace plan or have concerns about your coverage, let’s talk.”
• Reinforce that you’re working with your broker (that’s you!) and will share updates as soon as you know more.

Review your benefit design with an eye toward stability.

• For employees who might rely on individual marketplace subsidies: remind them that you offer (or can explore) employer plans, or that you’re available for a benefits-check.
• Reassess open-enrollment communication: make sure employees know deadlines, how changes may impact their cost, and encourage them to ask questions.
• Check if you offer voluntary or supplemental benefits (like the Aflac coverage you provide) that give cash-flow support regardless of what happens federally — these become especially meaningful in uncertain times.

Speak to your trusted broker or benefits partner (that’s me!) about mitigation strategies.

• Ask: What happens if marketplace subsidies drop? How might that affect our plan premiums or employee uptake?
• Explore options: Increased voluntary benefit communications, cost-sharing strategies, benefit education sessions, potentially carve-out support for employees in financial stress.
• Ensure you’re compliant: A shutdown may slow down government reporting or processes; you’ll still need to stay on top of benefit compliance and deadlines — we can ensure your technology and processes keep you aligned.

Boost morale intentionally.

• Host a short team huddle or lunch-and-learn about benefits: “Here’s how your benefits work, here’s how we’re watching the federal scene, here’s how you can make best use of them.”
• Recognize employee stress: “We know there’s a lot outside the business you can’t control — thank you for all you’re doing here and know we’re committed to your wellbeing.”
• Encourage choice: Remind them that benefits are a tool the business offers to support them, and your door is open if they have questions or need help exploring options.

Plan for scenarios.

• If the shutdown drags on and subsidies are cut, what’s the impact on your employees and their financial health?
• Consider if there are voluntary benefit tiers you can promote more strongly now (e.g., accident/critical illness coverage) that provide “safety net” value.
• Keep your finger on regulatory/regulatory updates: When agencies are slow, delay can mean risk of non-compliance; we’ll monitor so you don’t get caught flat-footed.

Why This Matters to Your Business Mission

Final Thoughts & Encouragement