Wisconsin's Hidden Health Care Tax

The Hidden Health Care Tax on Wisconsin employers has continued to grow, reaching $1.1 billion in 2016 alone. This tax is the result of Wisconsin’s BadgerCare (Medicaid) program only paying for 65 percent of the cost of hospital care for patients, resulting in health care costs getting shifted over to private payers.  This Hidden Health Care tax rivals what is paid by Wisconsin families and businesses through the state’s motor fuel tax ($1 billion) and corporate income tax ($921 million).

The Hidden Health Care Tax was originally named by Wisconsin's state chamber, Wisconsin Manufacturers and Commerce (WMC) because of its impact on Wisconsin businesses and those that provide health insurance to their employees.  In some areas of Wisconsin, the cost of government cost shifting results in up to 31 percent of the price paid by commercial health insurers for hospital care.  The Hidden Health Care Tax has a significant impact on the cost of doing business in Wisconsin.

Wisconsin's Medicaid reimbursement rates are the 2nd worst in the country.  Help cut the Hidden Health Care Tax on Wisconsin families by encouraging your legislator to increase Medicaid reimbursement for Wisconsin's hospitals.

 

WHA Contacts

Kyle O'Brien

Senior Vice President
Government Relations

608-274-1820

kobrien@wha.org

 

Brian Potter

Senior Vice President
Finance/COO

608-274-1820

bpotter@wha.org