State Has Taken Little Action On Possibility Of Losing Health Care Subsidies

Recently, Arkansas, Delaware and Pennsylvania got federal approval to switch to a state-based health insurance marketplace, but there’s been little action in most of the states — including Wisconsin — that could be affected if the U.S. Supreme Court blocks federal subsidies under the Affordable Care Act.

Most of the affected states have Republican governors. Wisconsin Gov. Scott Walker has said if federal health care subsidies go away, it’s up to Congress to fix the problem. But Wisconsin state Sen. Kathleen Vinehout, D-Alma, said the state should step in. In April, she introduced a bill to create a state exchange.

“I very much want the governor and the Republican legislators to take it, and change it and make it better,” Vinehout said. “I don’t care who gets credit. I just feel this problem needs to be solved as soon as possible.”

Insurers and health care providers are anxiously waiting for the court’s decision. The Wisconsin Hospital Association sent lawmakers a letter detailing how many constituents in each county could be affected.

In Wisconsin, more than 180,000 people use the federal marketplace. The average premium subsidy is $316 a month. There’s concern no subsidies for states like Wisconsin would prompt healthier people to drop coverage, leaving only more costly, sicker customers that drive up rates.