A new state study finds the new federal health care law will increase the number of citizens with health insurance, but individuals will see higher premiums and fewer employers will offer health insurance plans.
The report was prepared for the Wisconsin Department of Health Services by Gorman Actuarial, LLC, of Massachusetts.
The report said the Affordable Care Act will reduce the number of uninsured residents by 65%, primarily because of government subsidies and the existence of an individual mandate that all residents must buy health insurance. However, the report found most insurance buyers will subsidize that insurance for the now uninsured through higher premiums.
According to the report, prior to the application of tax subsidies, 87 percent of the individual market would experience an average premium increase of 41 percent; after the application of tax subsidies, 59 percent would experience an average premium increase of 31 percent.
According to the Lakeland Times, Reacting to the report, state Health Services secretary Dennis Smith said the law would prompt many employers to drop insurance coverage altogether, forcing as many as 100,000 people from their insurance plans.
However, the report does find in some areas, employees would gain employer coverage, and the net loss coverage would be less.