More may choose to work less under Obamacare

[Bleach Blonde Bad Built Butch Bodies for Biden]

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CNN Money

There's actually good reason for optimism from this report.  For one thing, the number of Americans covered under the law will markedly increase, and, the risk-adjustment provisions will turn a profit to the U.S. Treasury.  Of course, this has already been spun negatively by the usual suspects, so it all comes down to who's foolish enough to buy it.

[Likely Voter]

All programs (Social Security, Food stamps, Medicaid, etc) have shown to have similar effects. Didn't the earlier CBO reports reflect this? If not they should have.

[True Federalist (진정한 연방 주의자)]

All programs (Social Security, Food stamps, Medicaid, etc) have shown to have similar effects. Didn't the earlier CBO reports reflect this? If not they should have.

One of the problems with Obamacare is that it appears to stairstep far more severely than most other federal programs.  As such it provides an incentive for savvy people to aim for an income level just below the next stairstep.  That's especially true if you're in a Silver plan at an expected income level where you get deductible subsidies as well as premium subsidies.  I suspect they did that so as to make it easier for people to calculate which subsidy tier they will be on, but it is going to lead to perverse behavior to ensure you stay on that tier.

[Queen Mum Inks.LWC]

Can Medicaid and the federal subsidies support the increased people on them at lower tax revenues?

[Likely Voter]

All programs (Social Security, Food stamps, Medicaid, etc) have shown to have similar effects. Didn't the earlier CBO reports reflect this? If not they should have.

One of the problems with Obamacare is that it appears to stairstep far more severely than most other federal programs.  As such it provides an incentive for savvy people to aim for an income level just below the next stairstep.  That's especially true if you're in a Silver plan at an expected income level where you get deductible subsidies as well as premium subsidies.  I suspect they did that so as to make it easier for people to calculate which subsidy tier they will be on, but it is going to lead to perverse behavior to ensure you stay on that tier.

I would guess that Social Security and Medicare have a bigger effect on labor participation (due to people leaving the workforce) than ObamaCare (due to people reducing their hours). But more importantly if we all agree that we want to reduce the number of uninsured then there will be some kind of means tested incentive system put in place (even under the GOP proposal) and that is going to have an effect on the labor pool. If ObamaCare has to be adjusted to minimize the effect then so be it. But they need to look at the whole board as it were. There are many ripple effects of reform on the economy including productivity, new jobs in health care, reduced cost of healthcare inflation, etc.

This labor participation effect should not be an argument for going back to the way it was before just like people getting crappy plans canceled shouldn't have been an argument for going back to the old system.

[7,052,770]

People who work mainly for the insurance cut back on their hours thanks to Obamacare ==> companies hire previously employed people to replace said workers ==> unemployment rate goes down.

[Queen Mum Inks.LWC]

Honestly the work week thing now being 30 hours has got to go.

To how long?

[🐒Gods of Prosperity🔱🐲💸]

All programs (Social Security, Food stamps, Medicaid, etc) have shown to have similar effects. Didn't the earlier CBO reports reflect this? If not they should have.

One of the problems with Obamacare is that it appears to stairstep far more severely than most other federal programs.  As such it provides an incentive for savvy people to aim for an income level just below the next stairstep.  That's especially true if you're in a Silver plan at an expected income level where you get deductible subsidies as well as premium subsidies.  I suspect they did that so as to make it easier for people to calculate which subsidy tier they will be on, but it is going to lead to perverse behavior to ensure you stay on that tier.

It seems like with the subsidies, it would actually reduce the incentive for people to stay at a lower income to be eligible for Medicaid.

[7,052,770]

For the record, I strongly believe that the Obamacare subsidy line should be extended at a constant 9.5% past 400% FPL.  It would be alsmost entirely petered out by 600% anyway.

I had to make sure my MIL knew not to go about $45,000 in income (unless it got up above $51,000).  That piece of the law just wasn't well thought-out, though to be fair I'm sure Obama would be happy to fix it if House Republicans would allow it.

[I Will Not Be Wrong]

Very scary indeed.
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[bedstuy]

Is the argument that there are people who would like to say, retire early or become stay at home moms, but can't because they can't afford private health insurance without Obamacare?  For example, a woman had leukemia years ago and she wants to become a stay at home Mom.  Without Obamacare she could never get a private insurance policy that doesn't exclude coverage of cancer so she needs to get any job that has employer provided health insurance and can't pursue what she wants or even become self-employed. 

Maybe that's true.  But, I would rather people weren't constrained by healthcare costs in making their life decisions.  That basic tradeoff is totally worth it.

[badgate]

This is great. It will make room for people who are searching for jobs. Overall it will lead to growth for Americans.

[7,052,770]

This is great. It will make room for people who are searching for jobs. Overall it will lead to growth for Americans.

Yep. It's unsurprising but disappointing how hard the Right is trying to spin this into a negative for Obamacare.  The ACA has unshackled 2 million people from jobs they only needed for the health insurance and allowed 2 million unemployed people who need the salary too to come in and replace them.

[🐒Gods of Prosperity🔱🐲💸]

This is great. It will make room for people who are searching for jobs. Overall it will lead to growth for Americans.

This aspect of the law (as opposed to other aspects) may help the unemployment rate, but I don't see how it will lead to growth for America as a whole. It's not the same as if the unemployment rate were to go down due to more demand or investment, it's just a shift in who is doing the work.