With rising costs for health insurance purchased through the Affordable Care Act, Democrats in the Legislature are proposing another tactic to help more people afford health coverage.

Rep. Tara Johnson (D-Town of Shelby) announced legislation Tuesday that would enable members of the public buy into the state’s BadgerCare Plus health insurance plan.

BadgerCare Plus is Wisconsin’s name for Medicaid and is available to families and individuals with household incomes up to the federal poverty guideline — $15,960 for a single person and $33,000 for a family of three.

Johnson’s bill would expand BadgerCare’s coverage by creating a “public option” — allowing families with higher incomes to pay for the health plan out of pocket. Democrats in Wisconsin have offered similar proposals in the past that have not advanced. At the same time, the idea has been catching on in some other states, Stateline reports, although not all of them are connected to Medicaid. 

“When this law is passed, Wisconsinites will have an affordable option instead of the sky-high premiums and massive deductibles currently available from private insurance carriers,” Johnson said at a news conference in the Capitol Tuesday morning. “Public health care keeps prices down because it is not beholden to insurance company stockholders or bonuses for executives, and those savings will get passed on to Wisconsinites.”

“This will dramatically increase, for a large number of people, the number of affordable insurance options at a time when there is a crisis in affordability generally, and health care is one of the top reasons why,” said Robert Kraig, executive director of the advocacy group Wisconsin Citizens Action.

Sen. Chris Larson (D-Milwaukee) said the bill would provide an affordable health care alternative for people who had relied on plans purchased through the federal marketplace, HealthCare.gov, that was created by the Affordable Care Act. Enhanced subsidies that had lowered the cost of policies bought through the marketplace expired at the end of 2025.

On HealthCare.gov policies, “average premiums more than doubled when Republicans in Congress allowed those enhanced subsidies to expire at the end of last year,” Larson said. The subsidies were eliminated for families with incomes of more than 400% of the federal poverty guideline — around $86,000 for a couple.

For a 55-year-old couple at that income level, the premiums on the second-tier of plans sold at HealthCare.gov would increase “from $601 a month to $2,311 per month this year,” Larson said — or about $20,000 a year.

The legislation would “move us closer to the point where we need to get, where health care is a right for all and anyone can get the care that they deserve without a speck of fear that they are going to go broke just so that they can survive,” Larson said. “The fact that that is an open question right now is shameful for our state. It’s shameful for our country.”

The bill also would allow small businesses with fewer than 50 employees to enroll in BadgerCare plans. Madison chef and restaurateur Evan Danells said some of his employees had relied on ACA plans but were also confronted with increased premiums that many would have trouble being able to afford. Danells is a member of Main Street Alliance, a small business group that has organized support for the ACA among other policies.

“One of the coolest things about having a public option is it allows people to go in and get affordable preventative care,” Danells said. As a result, “they don’t become wards of the state health care system when they’re all of a sudden broke and the problem has snowballed.”

Indiana Hauser of La Crosse said she works two part-time jobs, neither of which provides health insurance. Last year she was able to purchase health coverage for $12 a month with the enhanced subsidies. “This year it went up to $400 a month for worse coverage,” said Hauser, who is active with the advocacy group Citizens Action of Wisconsin.

Hauser said she has life-long health complications due to a traumatic brain injury when she was a teenager. Nevertheless, she said, she has had to go without insurance this year because she cannot afford it.

An affordable community clinic helps her, she added, but many communities don’t have such resources.  While rationing her medications and visits to the doctor, Hauser worries that she’s “one small accident away from a financial crisis,” she said.

“Across the state, there are people and families making life or death decisions, and it doesn’t have to be that way,” Hauser said. “The BadgerCare public option could change my life and the lives of people all across our state.”

Larson and Kraig said that due to changes made by the federal tax- and spending-cut bill that President Donald Trump signed in July 2025, the likely premiums people would pay for BadgerCare under the Public Option haven’t yet been calculated. A 2025 analysis by the Legislative Fiscal Bureau projected premiums could cost about $971 a month, but also noted that a variety of factors could increase or reduce that cost.

According to the Feb. 17, 2025, fiscal bureau memo, “It is possible that the purchase option population could be, on average, less costly, which could make the premium lower” compared with the medical needs of BadgerCare patients who qualify for Medicaid. “If, on the other hand, the purchase option attracts older individuals or individuals with more significant health conditions, the premiums may be similar to, or even higher than, the average cost of BadgerCare Plus coverage.”

With the legislation being introduced after the Assembly has already wrapped up its floor period for 2026, the proposal seems unlikely to advance this year.

“I would say it’s always a good idea to introduce good bills,” Johnson said when asked about the timing of the announcement. Gov. Tony Evers, she noted, earlier Tuesday called for a special session to pass a resolution against gerrymandering the state’s legislative maps.

“We have five days on the calendar in March. We have five days in the calendar in April, I think it’s three days in May,” Johnson said. “There’s no reason that we cannot take up this legislation.”

Then she corrected herself. “Well, there is one reason, and it’s because the speaker chooses not to call us into session,” Johnson said.

“A lot of these bills are sitting in Google Drives,” added Rep. Supreme Moore Omokunde (D-Milwaukee). “All this session, we have bills ready to go. It’s a matter of will they be heard? It’s a matter of what is the appetite to have the debate about them? We know that this is something that Wisconsinites care about. They want us to stay here. They want us to get this done.”