FOR IMMEDIATE RELEASE
FRIDAY, OCTOBER 4, 2024
CONTACT: press@opportunitywisconsin.org
ICYMI: 235,000 Wisconsinites could pay more for health insurance if ACA tax credits expire
Congress has an opportunity to extend tax credits and create a fairer tax code in 2025
MADISON, Wis. – In case you missed it, without congressional action, 235,000 Wisconsinites could be forced to pay more for health insurance as tax credits extended by the Inflation Reduction Act are set to expire in 2025—the same year as provisions of the 2017 Republican Tax Law are set to expire.
Thanks to the current extension in tax credits, enrollment in the Affordable Care Act has reached record highs. Currently, 235,587 Wisconsinites are saving money thanks to premium tax credits. Without these cost savings, Wisconsinites would pay an annual increase of $1,200 for their health insurance, an increase of 85%. States that have not expanded Medicaid, including Wisconsin, would be harder hit by this increase as many families would be left without options to access affordable coverage.
Next year, Congress has the opportunity to create a fairer tax code – one where the ultra-wealthy and corporations pay their fair share in taxes – when provisions of the 2017 Republican Tax Law expire next year. Increased revenue from a fair tax code could then be used to invest in programs that lower costs for Wisconsinites—like extending the ACA premium tax credits.
“Thanks to the Inflation Reduction Act, enrollment in the Affordable Care Act has reached all-time highs. That means more Wisconsinites are able to afford health coverage and access the care they deserve,” said Opportunity Wisconsin Program Director Meghan Roh. “If Congress fails to act, next year hundreds of thousands of Wisconsinites will watch their health care premiums skyrocket. More than ever, we should be working to make sure the ultra-wealthy and corporations pay their fair share in taxes, lower health care costs, and invest in successful programs that support working families – that’s why Congress needs to take action before it’s too late.”
NEW YORK TIMES: Millions Could Lose Insurance Subsidies, Depending on the Election
[Margot Sanger-Katz, 9/30/24]
Subsidies that help around 20 million Americans pay for health insurance could disappear after next year, depending on the outcome of November’s election.
The subsidies, which reduce the price of health insurance for people who buy their coverage in the Obamacare marketplaces, were passed as a temporary measure in 2021, then extended as part of the Inflation Reduction Act in 2022. In that time, Obamacare enrollment has nearly doubled. If Congress doesn’t extend them, the subsidies will expire at the end of 2025
Obamacare enrollment has risen to a record high with the extra tax credits, which make insurance effectively free for people earning less than around $20,000 in most states, and which decrease premiums for higher-earning households. That rising enrollment has also led to a more robust insurance market, with more consumer choice of health plans.
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