If every citizen in Wisconsin eligible for tax credits was enrolled, 16,629 jobs would be created in state.
How Enrollment in Healthcare.gov Creates Jobs in Wisconsin
A new report on the Affordable Care Act’s tax credits in Wisconsin shows that their economic impact leads to substantial job creation. The Affordable Care Act’s advanced premium tax credit (APTC) available to help consumers afford health coverage represents a flow of federal funds into local economies that create economic multipliers. As these new funds enter the state through health insurers and healthcare providers, the spending in turn continues on to other sectors such as real estate and food service. This report suggests that enrolling more resident in plans at Healthcare.Gov is a potent job creation tool.
The premium tax credit in the Affordable Care Act is available to individuals who enroll in coverage options on Healthcare.gov and are based on a clear formula. Tax credits are provided to ensure that no matter what the income of the enrollee is, health insurance will not be more than 9.5% of an individual income. And for enrollees with less than 300% of the federal poverty limit that maximum percent becomes smaller, with individuals at 100% of the federal poverty line paying no more than 2% of their individual income toward premiums.
Major Findings in the Report
- 1 job is created in Wisconsin for every 30 people enrolled, on average
- There are 502,736 residents eligible in Wisconsin for tax credits at Healthcare.gov
- If every citizen in Wisconsin eligible for tax credits was enrolled, the federal tax credits would lead to 16,629 jobs in state.
- If the Walker Administration pushed harder to enroll even half of those eligible for tax credits, Wisconsin could see 8,300 plus jobs from the tax credits alone.
- The majority of these jobs would be created in the health sector and insurance sector, but would spill over into retail, food services, employment service and Real Estate across the state.