Wisconsin residents brace for Obamacare premium increases

MILWAUKEE - Some Wisconsin residents who rely on Obamacare plans are bracing for major increases in their health insurance premiums, with expanded tax credits set to expire at the end of the year.

What we know:

With about 30 days before new rates take effect, some enrollees are seeing what amounts to sticker shock. For a 26-year-old in Racine County earning $48,000 a year, annual premiums are set to rise by about $1,600.

Obamacare, formerly known as the Affordable Care Act, was temporarily made more affordable under expanded premium tax credits approved during the pandemic. Those enhanced subsidies were included in the American Rescue Act and significantly reduced monthly costs for many families. 

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When they expire, premiums rise sharply for certain income groups.

Local perspective:

Kara Pitt-D’Andrea, who is enrolled in an Obamacare plan, said her premium is nearly doubling. In 2021, the American Rescue Act provided larger Obamacare premium tax credits. Those expire at the end of the year.

"There’s going to be people who are devastated, impacted at a devastating level," said Pitt-D’Andrea.

Patrick McIlheran of the Badger Institute said the higher premiums reflect a deeper issue with the cost of health care.

"What happened then during the pandemic, that’s when these added subsidies, added credits were installed, and they just masked the problems still further," said McIlheran. "Remember that Obamacare coverage was already too expensive. The Biden administration used the excuse of a pandemic to add more subsidies, that insulated even more of the cost, kept more of the cost off customers."

The increases vary widely by age, income and location.

By the numbers:

A 60-year-old couple in Milwaukee County earning $85,000 a year could see their silver plan premiums increase by about $25,000 annually. In Waukesha County, a family of four making $130,000 a year would lose its eligibility for enhanced tax credits, pushing premiums up by roughly $12,000 a year.

That family makes more than 400 percent of the federal poverty line. If they made $126,000 a year, they would fall under that threshold and still qualify for regular Obamacare subsidies.

What they're saying:

"It’s a foreseeable disaster," McIlheran said. "Obamacare did nothing to restrain the cost of healthcare, the underlying problem. If anything, it seems to have increased both the cost of healthcare and that cost of the insurance that’s being used to help people cover that."

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The debate over the expiring subsidies has renewed long-running political fights over the Affordable Care Act. The issue previously fueled the longest government shutdown in U.S. history and has once again brought back years of fighting over Obamacare in Washington.

"We know we can do the tax credits. We’ve done them. They offer a stronger, better community. And across Wisconsin, families are going to be devastated," said Pitt-D’Andrea. "We’re simply asking not to be put into financial ruin and medical bankruptcy or any type. That is the conversation. Isn’t there a solution in there, compassionate that focuses on the compassion towards your neighbor and also the capitalist spirit?"

Dig deeper:

To end the recent shutdown, Senate Republicans agreed to bring a Democratic bill extending the subsidies to the floor. A vote is expected later this month, but there is no guarantee the measure will pass or that it will advance in the U.S. House.