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Study: Gov. Walker's Medicaid plan to cost employers $24-$36M


MADISON, WI (WTAQ) - Governor Scott Walker’s Medicaid plan under the Obama health law could cost Wisconsin employers a total of $24 to $36 million a year.

That’s according to a new national study by the Jackson-Hewitt Tax Service.

The firm estimates that Wisconsin will have 12,000 workers who get government subsidies while relying on the new federal exchanges for their insurance. And under the health law, their employers will be hit with additional taxes of $2,000 to $3,000 each.

Under Walker’s proposed state budget, those above the poverty line who now get BadgerCare Plus would be moved to the exchanges – thus letting more adults in poverty get BadgerCare.

Walker spokeswoman Jocelyn Webster defended the extra employer taxes by saying that the governor’s plan would cut the number of uninsured Wisconsinites in half. And she said it would reduce government dependence, and let more people make their own health care decisions.

The federal government has offered to pay the added expenses of expanding state Medicaid programs at least through 2020. But Walker turned it down, saying that Washington might not be able to keep its end of the bargain.