Dan Sacks, an associate professor of risk and insurance at the University of Wisconsin-Madison School of Business, said the expected end of enhanced tax credits likely factored into Common Ground’s decision. That’s because subsidies help people who wouldn’t get insurance due to the cost gain coverage, he said.
“Generally, when they take away the subsidies, it’s less profitable to offer insurance,” Sacks said. “It makes sense that an insurer would want to drop out.”