UnThreaded | Threaded | Whole Thread (47) | Ignore Thread Prev | Next
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
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
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).

http://cbo.gov/sites/default/files/cbofiles/attachments/4501...

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.

Albaby
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (47) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Macro Economics

Intel's Broadwell Potential
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement