Obamacare, expanding the Welfare State as Predicted
By Linda Freeman
How does the CBO foresee worker behavior changing because of Obamacare? People with “below-average earnings” could be most affected by the law, the report says, because of the incentives the law creates to reduce work. If a person cuts back on hours of work – reducing their income – and thereby becomes eligible for a federal subsidy to buy health insurance, they might come out ahead financially.
The same holds true for a person who reduces their income and becomes eligible for Medicaid, a federal-state program that provides health insurance for low income people.
Read the Rest @ Obamacare: ‘Job-killer’ or freedom from ‘job trap’? – Yahoo News.
Elmendorf agreed and also said it would primarily be low-income workers who choose not to work. “By providing heavily subsidized health insurance to people with very low income and then withdrawing those subsidies as income rises, the act creates a disincentive for people to work relative to what would have been the case in the absence of that act,” the CBO director said.
The introduction of ACA subsidies to help people buy insurance on the individual market creates a number of economic incentives when it comes to income. In particular is the phase-out of all subsidies for households once their income surpasses 400% of the Federal Poverty Level (FPL). Getting a raise or putting in more hours beyond the FPL threshold may actually result in less take-home income for the household.
Read the Rest @ ACA Subsidy Cliff May Incentivize Some To Earn Less