CONGRESS CUTS TAX CREDITS FOR FEDERAL HEALTHCARE MARKETPLACE
If you get insurance through the federal Healthcare Marketplace, you probably already know that your healthcare costs are going up—and maybe by a lot.
Insurance through Healthcare.gov has been available since 2010, with subsidies in the form of “tax credits” making health coverage affordable for individuals.
In 2021, Congress approved “enhanced premium tax credits” that improved subsidies and lowered premiums. The number of Wyomingites who gained healthcare coverage through the Marketplace doubled.
Now, however, Congress—with support from Rep. Hageman and Sens. Barrasso and Lummis—is refusing to renew the “enhanced premium tax credits,” which expire at the end of this year.
That means that Wyoming residents who get health insurance through the Marketplace—often small business workers, independent contractors, or people who have multiple part-time jobs—are going to see their monthly insurance costs increase.
Without congressional action before the end of the year to extend enhanced tax credits, average premiums could rise by $1,860 annually statewide.
Premiums would skyrocket for some Wyomingites, with the largest hikes for those who make about 400% of the federal poverty level.
According to a Center on Budget and Policy Priorities analysis:
- a family of four earning $130,000 will see its annual premium increase by more than $30,000
- a 60-year-old couple making $85,000 a year would pay almost $49,000 more than they do today
People insured through the Marketplace must evaluate if their income will allow them to still afford such coverage. If not, many will explore the private market or may choose to go without health insurance.
If you get health insurance through the federal Healthcare Marketplace and have questions, reach out to Enroll Wyoming or Wyoming 2-1-1.
CONGRESS’ CUTS DRIVE UP HEALTHCARE COSTS FOR ALL
Congress’s decision to cancel “tax credits” for the federal Healthcare Marketplace will result in thousands of people losing their health coverage in Wyoming.
Even if you get health insurance through your job, like most Wyomingites, Congress’ actions—backed by Rep. Hageman and Sens. Barrasso and Lummis—are driving up your healthcare costs, too.
To start with, Wyoming has the most expensive health insurance rates in the nation.
On top of that, when huge numbers of people lose their health insurance coverage, it drives up healthcare costs for everyone in three basic ways:
- Federal Healthcare Marketplace tax credits are basically subsidies for the insurance industry. Since those subsidies are going away, insurance companies like Blue Cross Blue Shield of Wyoming are raising their rates to cover the loss.
- When the price of insurance goes up, younger, healthier people often opt out of insurance altogether. When that happens, insurance companies further increase costs for consumers who are older and sicker.
- Finally, when more people lack health coverage, uninsured individuals often go to the emergency room if they become seriously ill or injured, even when they don’t have the ability to pay. When that happens, hospitals pass on these “uncompensated care” costs to everyone else in the form of higher healthcare prices.
When these increased healthcare costs hit employers, it also makes it more difficult for them to offer job-based insurance plans in the first place, hurting Wyoming’s economy and workforce.
MEDICAID BUREAUCRACY AND PAPERWORK
In 2025, Congress passed the “One Big Beautiful Bill Act,” which cut funding for Medicaid by nearly $1 trillion nationwide over the next decade.
Most cuts to Medicaid in the Big Beautiful Bill will impact people who live in states that have expanded the program to offer coverage to low-wage workers. Since Wyoming has refused to expand Medicaid, our state will see less of an effect.
However, the cuts to Medicaid in the Big Beautiful Bill increase bureaucracy to make it more difficult for people to receive coverage. This will result in some Wyoming residents—who can qualify for Medicaid only if they are both low-income and also pregnant, disabled, blind, or a new mother—losing coverage because they fail to complete the proper paperwork.
If you receive health coverage through Medicaid, you should contact the Wyoming Department of Health to check and see what new paperwork might be required.
MEDICARE ELIGIBILITY AND PAYMENTS
The main portion of the Big Beautiful Bill passed by Congress this year gives large tax breaks to the wealthiest people in Wyoming and across the nation.
The loss in tax revenue as a result of these cuts will drive up the federal deficit by roughly $4 trillion over the next 10 years. Wyoming’s Representative Hageman and Senators Barrasso and Lummis supported this deficit increase.
If Congress passes legislation that increases the deficit without offsets, it triggers automatic across-the-board cuts to mandatory spending like Medicare.
Medicare could lose $45 billion in the next fiscal year under this scenario, and similar amounts annually for several years. While no Medicare enrollees would lose coverage, there would be a reduction in payments to Medicare providers and plans.
The Big Beautiful Bill also tightens Medicare eligibility rules and triggers funding reductions that hit all Medicare parts.
The new law blocks planned expansions of programs that help low-income Medicare beneficiaries pay premiums and co-pays. More than a million seniors nationwide may lose financial assistance, forcing them to make difficult choices between health care and essential expenses.