Rising healthcare costs concern Wisconsin residents ahead of midterm elections
WISCONSIN (CBS 58) — Healthcare costs are one of the top concerns for voters heading into the midterm elections, according to Marquette polling. Experts say the costs of care and insurance have both risen.
It’s an increase in costs that Janesville resident Richard Neeno is familiar with. He and his wife own two businesses in Janesville. Neeno qualifies for Medicare because of his age, but his wife purchases health insurance through the healthcare exchange, and her costs have risen.
“Prices have gone up. We’ve seen changes in what’s covered and what’s not, and what the copay is and things like that,” Neeno said. “It has just become more difficult. Probably the biggest thing is just the uncertainty.”
According to Neeno, his wife has seen a 30% increase in her healthcare costs since the Affordable Care Act subsidies expired. Those subsidies were created during the Biden administration through the American Rescue Plan.
“Things are getting worse in terms of healthcare, not better, and it’s becoming more expensive and, frankly, more questionable on whether or not it will even continue,” Neeno said.
Experts say the numbers reflect those concerns.
“There are about 20,000 fewer people getting coverage through Affordable Care Act plans. There are about 290,000 people still getting it, so a lot of people remain. But the people who are still getting it are paying more for worse coverage,” said Dan Sacks, a healthcare expert and professor at the University of Wisconsin-Madison.
Sacks is a professor of risk management and insurance at the University of Wisconsin-Madison School of Business, where he studies healthcare and costs.
Sacks said Affordable Care Act premiums rose from about $2,000 to $3,000 as coverage worsened, while Wisconsin lost about $100 million in federal premium tax credit subsidies.
“The people who drop coverage first are typically the healthy people, and those are the people the insurers want to cover,” Sacks said. “When the healthy people drop out, what you see is premiums go up because the cost of everyone else has to be higher on average.”
What are some possible solutions?
Sacks said medical care providers can often set their own prices because of their market share. In some areas, a provider may be the only option available to patients.
He said increased scrutiny of mergers and acquisitions involving healthcare companies could help lead to fairer pricing.
“What antitrust enforcement looks like is that these deals, these mergers and acquisitions, get more scrutiny and are more challenged by, like, the Department of Justice,” Sacks said.
Sacks said some states have also opted to create their own health insurance subsidies to lower costs for people purchasing coverage through the exchange. While such programs would require a budget allocation, he said research shows they can lower costs overall.
“There is another advantage to these programs, which is when you bring down premiums, you make it more likely that low-cost, healthy people sign up for coverage, and that brings down premiums for everyone,” Sacks said.
For Wisconsin residents like Neeno, the hope is that a solution is on the horizon.
“Is healthcare a top issue for you heading into the midterms?” CBS 58’s Meredith Hackler asked.
“Yes, it is. With the understanding that it is a huge issue and it’s going to require the work of so many people, it’s not something one can blame on one person, except that one person can make a difference,” Neeno said.