What Would Happen if Premium Tax Credits Went Away in Wisconsin?
Just recently, the US Supreme Court voted to uphold Obamacare subsidies. What exactly does this mean?
First, we need to define subsidies. Premium tax subsidies and advanced premium tax credits are both the same thing, and they refer to the income-based discount on Obamacare health insurance. This is the advanced discount to help pay your premium. For example, based on your income, your tax credit could be $150, which reduces your premium by that much every month.
The issue that went before the Supreme Court was whether these premium tax subsidies are eligible for states that did not opt in to the state marketplace and chose the Federal instead.
Wisconsin did not opt in to the state marketplace. In fact, 34 states did not opt in. This ruling affects millions of Americans.
Which brings us back to our original question, what would happen if premium tax credits went away? In one word, chaos. Without any federal tax credits, the additional costs would fall on the insured and this difference could be significant. It would lead to many people no longer being able to afford their coverage. Which leads us back to the issue of uninsured Americans; however, these Americans now also fines for not having coverage.
Here at FHK Insurance Services, we proudly support the ruling by the Supreme Court. We feel this ruling allows our Wisconsin clients access to affordable health care and effective plans.
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