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Author: albaby1 Big gold star, 5000 posts Top Favorite Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1947212  
Subject: Re: On ACA and "freedom" to leave your Date: 2/6/2014 3:42 PM
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Extraordinarily dumb statement. You think people will just quit working if the get healthcare that isn't tied to their employer?

Why would anyone do that?

Because the effect is not just limited to health care not being "tied to their employer" - a non-trivial number of people will receive health care that is either free to them, or heavily subsidized. This creates incentives not to work, particularly among the Medicaid eligible. Here's the explanation from the CBO report itself:

As with exchange subsidies, access to Medicaid confers financial benefits that are phased out with rising income or (more commonly) eliminated when income exceeds a threshold; some people will thus work fewer hours or withdraw from the labor force to become or remain eligible (the substitution effect). Moreover, those financial benefits will lead some people to work less because the increase in their available resources enables them to reduce work without a decline in their standard of living (the income effect).


The CBO finds that some people will increase their work, because they still have "room" underneath the expanded thresholds to work more and not lose their Medicaid eligibility. But on balance, the effect is people reducing hours or withdrawing from the labor force.

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