The Affordable Care Act has moved center stage in some political campaigns – including in the presidential race. The government announced this week that across the country, premiums are expected to rise by around 25 percent for plans on the federal exchanges. The percentage is lower in Wisconsin, around 16 percent.
The Affordable Care Act took effect in 2010, with the of ensuring that all Americans had access to healthcare. Robert Kraig says now it’s time to focus on improving the law. Kraig is executive director of the advocacy group Citizen Action Wisconsin which it supports the program.
“The Affordable Care Act’s major emphasis was on coverage, which was really important, but did a lot less around cost. We don’t think the affordable care act in any rate is causing premiums to increase. We had hyperinflation that was even greater that was double before the passing of the Affordable Care Act in Wisconsin,” Kraig says.
Currently, in Wisconsin, around 224,000 people are participating in the exchange, and premiums here are expected to increase by about 16 percent.
“Most of the people who purchase insurance through the Affordable Care Act Marketplace will not themselves be paying those increases.”
That’s Donna Friedsam, of the UW-Madison Population Health Institute.
“The increases will be offset by the federal financial assistance that’s provided through Obamacare,” Friedsam says.
Freidsam says insurers are drastically increasing the sticker price for healthcare through the exchanges as a way to fill the gap left by the federal government ending its reinsurance program. It gave money to insurers taking part in the marketplace to cover high-cost patients.
“And so the insurance companies are having to build into their premium the potential that they’re going to have to handle on their own any unexpected very large events that happen among their customers,” Freidsam says.
When it comes to the number of insurers participating in Wisconsin’s federally-run exchange, Friedsam says the state is leading the pack. She says the reason people here have more options is because the state does not depend solely on large nationally-known insurers.
“What we have in Wisconsin is a very large number of what’s called domestic insurance carriers or even provider owned insurance carriers. So the hospitals and health delivery systems that deliver our health care have developed their own insurance companies as a counterpart business,” Friedsam says.
Still, Freidsam says work remains. She’d like to educate the 111,000 state residents buying insurance directly from a broker.
“We’re seeing data now that about 51,000 people in Wisconsin who purchase those individual plans off exchange, not through the marketplace are probably eligible for federal financial assistance, and they’re not getting it. What that means is they’re paying too much for their health insurance,” Freidsam says.
Opponents of the Affordable Care Act argue the plans are too expensive, and that the law – along with its subsidies cost taxpayers too much.
Wisconsin Governor Scott Walker refused to create a state exchange, insisting the program would eventually collapse.
Tuesday, November 1st will mark the start of open enrollment for people interested in signing up for insurance under the Affordable Care Act.
They have until December 15th, to sign up for coverage that would begin in January.
