CBO: Obamacare Creates Disincentive For People To Work

That’s what socialism does in general. What’s the point of working harder, only to have that additional income taxed more, leaving you with less money than you’d have if you had otherwise not worked hard to make more money?

In the context of Obamacare, if a family makes between 100% and 133% of the FPL, they would be responsible for paying no more than 2% of their income toward health insurance. The more money they make, the higher their insurance premium cap is. So, if a family made between 300% and 400% of the FPL, they’d be responsible for paying no more than 9.5% of their income toward insurance premiums. As long as the family’s income remains at or below 400% of their respective FPLs, they’re eligible for federal subsidies that pick up the remainder of the insurance premium. As soon as a family makes even $1 over 400% of the FPL, they’re no longer eligible for a federal subsidy, and they must pay the entire premium themselves.

For this reason, the CBO director Doug Elmendorf made this comment before Congress about Obamacare:

“What the Affordable Care Act does, is to provide subsidies focused on lower- and lower-middle-income people to buy health insurance. And in order to encourage a sufficient number of people to buy an expensive product like health insurance, the subsidies are fairly large in dollar terms. Those subsidies are then withdrawn over time — withdrawn from people as their income rises… And by providing heavily subsidized health insurance to people with very low income, and then withdrawing those subsidies as income rises, the (Affordable Care) Act creates a disincentive for people to work, relative to what would have been the case in the absence of that Act.”

Obamacare isn’t going to help poor people. It’s going to convince them to stay that way.