Wisconsin Faces Higher Insurance Costs Without ACA Aid

Article Summary –

Nathaniel Lentz, living independently with a disability in Oregon, faces financial strain after his health insurance costs surged from under $5 to $581 per month due to the expiration of enhanced Affordable Care Act tax credits. The U.S. House passed a bill to extend these subsidies for three years, but action in the Senate remains stalled, with political disagreements highlighted by Wisconsin GOP Rep. Derrick Van Orden’s controversial votes. Many, including Eddie Phanichkul of Milwaukee, find themselves unable to afford rising insurance premiums, emphasizing the need for bipartisan action to address the broken health insurance system.

Nathaniel Lentz values his independence. In November, he moved from his parents’ home to reside in Oregon, a suburb of Madison. As someone living with a disability, he works at the Arc-Dane County, a disability rights advocacy group.

Lentz is quite economical, spending mainly on rent and groceries. Until recently, he paid under $5 monthly for health insurance, thanks to enhanced Affordable Care Act tax credits. However, this cost spiked to $581 starting this year, adding financial stress. He considered relocating or borrowing money.

“I’d be very upset, because I know how to budget,” he told the Wisconsin Independent. “I wouldn’t feel good if my parents had to help me again.”

Tax credits that made Affordable Care Act health insurance affordable were widened under the American Rescue Plan Act of 2021 and extended by the Inflation Reduction Act of 2022. These subsidies expired end of 2025 after Republicans voted against further extensions.

Last month, the U.S. House approved a bill to extend subsidies for three years, with some Republicans supporting Democrats. However, no action has been taken in the Senate.

Wisconsin GOP Rep. Derrick Van Orden, in a tight re-election race, voted for the bill but had blocked a prior vote. Despite opposing the Affordable Care Act, he claimed the vote was necessary due to Democratic failures, saying, “I will always put the people of Wisconsin first.”

The Democratic Party of Wisconsin criticized Van Orden’s vote as a “desperate attempt” to salvage his campaign. “Maybe he forgot he still lists repealing the ACA on his campaign website,” said party spokesperson Philip Shulman in a news release.

Lentz sees a potential solution: a prospective job offering health insurance. Yet, he remains concerned about rising costs for essentials like groceries, remarking, “It’s not just health insurance. It’s everything. It’s not like the American dream anymore.”

Enrollment in the Affordable Care Act in Wisconsin declined this year compared to last year, per the Centers for Medicare and Medicaid Services.

Eddie Phanichkul of Milwaukee chose to go uninsured due to increased costs, despite his daughter’s eligibility for BadgerCare. Previously paying $560 for ACA coverage, prices soared over $1,100. Phanichkul, the Democratic Party of Milwaukee County’s membership secretary, emphasized, “It’s a bipartisan issue, but it’s just not happening.”