Wisconsin ACA Premiums Set to Rise Amid Lapse of Enhanced Premium Tax Credit

Health insurance premiums on the Affordable Care Act (ACA) marketplace in Wisconsin are projected to rise by an average of 16%, with some rates increasing up to 34.5%. The main driver behind these hikes is the lapse of the Enhanced Premium Tax Credit, a key subsidy that helps make coverage more affordable for families. This tax credit was not extended in a recent budget bill, leading to increased costs for approximately 850,000 Wisconsin residents relying on marketplace health plans.

Senator Tammy Baldwin has been a leading advocate for maintaining and extending the Enhanced Premium Tax Credit to control insurance costs. The tax credit was initially extended by the Inflation Reduction Act, but it is set to expire at the end of 2025, prompting legislative efforts to prevent premium increases and ensure continued marketplace affordability. The situation highlights the impact of federal policy decisions on state-level insurance premium rates and marketplace stability.