Wis. Medicaid decision could hike corporate taxes

Posted Wednesday, January 22, 2014 --- 1:36 p.m.

MILWAUKEE (AP) -- A new report says the federal health care law could spell additional tax penalties for Wisconsin businesses with a large number of low-income employees.

Starting next year, employers will face a tax penalty if their workers get subsidized coverage through the federal online exchanges instead of through Medicaid.

In states that agreed to expand their Medicaid programs, large employers won't be hit with tax penalties. But Wisconsin isn't expanding its Medicaid coverage. It only agreed to delay by three months the date when 77,000 people just above the federal poverty line will lose Medicaid coverage.

A report released Wednesday by Jackson Hewitt Tax Service Inc. says if Wisconsin doesn't expand Medicaid, employers could face total tax penalties ranging from $25 million to $37 million.

Copyright 2014: Associated Press


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