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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.

Read the Rest @ ‘Job lock’ and the continued controversy over the CBO Obamacare report

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

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