Gov. Evers issues dire warning about loss of ACA subsides

Wisconsin residents currently utilizing the Affordable Care Act (ACA) for their health insurance are experiencing the perfect storm. Federal changes in eligibility, the expiration of enhanced tax credits, and insurer increases will make ACA coverage unaffordable for many, provided they qualify at all.

It has Gov. Tony Evers sounding the alarm.

“With open enrollment just days away, President Trump and Republicans in Congress must work across the aisle to ensure these Affordable Care Act tax credits do not expire and prevent Wisconsin families and seniors from seeing their healthcare coverage costs skyrocket,” said Governor Tony Evers in a press release joined by Nathan Houdek, Commissioner of Insurance. 

In addition to already estimated increased premium costs of 18 percent nationally, the loss of the enhanced credits, put in place in 2021 during the pandemic to help lower the premiums of people across all income levels, threatens to more than double some premiums. A middle-class family of four in Marathon County could see their premium rise from $886 a month to over $2,300 a month. In Barron County, a 60-year-old couple making around $85,000 could see their premiums skyrocket by more than 800 percent, with an annual increase of over $33,000. 

The enhanced tax credits extended coverage to those with income above 400% of the federal poverty guidelines. Enrollment in the ACA Marketplace doubled from about 11 to more than 24 million people, the vast majority of whom received an enhanced premium tax credit.  

Since 2014, enrollees have paid health insurance premiums of between 1% and 6% of their taxable income. That will increase to 10% if the tax credits are allowed to expire. Those earning over 400% of the poverty level will no longer be eligible for any tax credit. 

“This is not a partisan issue,” said Senator Kristin Dassler-Alfheim (D-Appleton). “This is about the health and well-being of the farmers who put food on our tables, the retirees not yet eligible for Medicare, and the small business owners who make our communities thrive. The people have spoken; they want these credits renewed. It’s time for Congress to get it done,” 

During the 2024 enrollment period, 277,000 out of more than 313,000 Wisconsin enrollees qualified for premium subsidies, with an average premium subsidy of $664 per month across all Wisconsin counties.

How much Wisconsinites’ healthcare coverage costs will increase will vary by age, income, plan selection, and the insurers available in each county. Seniors and middle-class families will likely see some of the most significant increases if enhanced tax credits under the Affordable Care Act are not extended.

Nationally, an estimated 20 million Americans will face significant premium increases, and nearly 4 million could be uninsured by 2027. 

According to a poll conducted by the Kaiser Family Foundation (KFF), a nonprofit, nonpartisan research organization, 78% of Americans support renewing the credits, including 59% of Republicans and 57% of Trump supporters.