A Citizen Action of Wisconsin analysis of the Senate’s health repeal legislation reveals the plan would expose many Wisconsin consumers who receive federal tax credits under the Affordable Care Act to premium hikes and massive out-of-pocket costs.
CAW said the Senate Republican’s bill released June 22 would, if enacted, sabotage the Affordable Care Act tax credits for more than 100,000 Wisconsinites.
The bill would remove the law’s current tax credits, which reduce out-of-pocket costs like deductibles and it would direct the monthly premium tax credits to focus on worse “Bronze” plans (currently aimed at “Silver” plans).
These changes would be catastrophic for Wisconsin health consumers, exposing hundreds of thousands of Wisconsinites to the state's’ higher than average healthcare prices, according to CAW. Wisconsin is the second most expensive state for medical prices in the country after Alaska.
This Senate plan exposes residents to skyrocketing deductibles and higher monthly premiums for many. Residents earning 350-400 percent of the federal poverty line ($42,210 - $48,240 annually for an individual), would be cut off from any assistance in purchasing coverage.
“As a high cost state, Wisconsin health consumers benefit more than other states from tax credits under the Affordable Care Act which provide more help for consumers who live in areas with more expensive health insurance,” said Robert Kraig, executive director of Citizen Action of Wisconsin. “By trying to sabotage the health care law, the Senate’s scheme would dramatically increase the price of health care for tens of thousands of Wisconsinites.”
Other preliminary findings, provided by CAW:
The Senate’s tax credit plan ignores Wisconsin’s high medical prices and exposes Wisconsinites, especially the low to moderate income, to higher health costs.
Average deductibles for a “benchmark” plan (what the tax credits are based on) would increase for someone earning 150 percent of the poverty line ($18,090/year) by more than $6,000 a year.
A 60-year-old at 351 percent of the federal poverty line ($42,220 annually) would be cut off from any tax credits to make premiums more affordable. Currently, that same individual averages over $450 per month in premium tax credits under the ACA.