About the Author

James C. Capretta

James C. Capretta

New Atlantis Contributing Editor James C. Capretta is an expert on health care and entitlement policy, with years of experience in both the executive and legislative branches of government. E-mail: jcapretta@aei.org.


 READ MORE

James C. Capretta’s Latest New Atlantis Articles

 Health Care with a Conscience” (Fall 2008) 

 Health Care 2008: A Political Primer” (Spring 2008) 

 The Clipboard of the Future” (Winter 2008)

 

 More on James C. Capretta

Text Patterns - by Alan JacobsFuturisms - Critiquing the project to reengineer humanity

Thursday, April 26, 2012

Obamacare’s Creation of Instability in Insurance Subsidies 

I have a new column up at e21 on the recent CBO study that shows the strange inequalities that will result in the health insurance options for certain families:

CBO’s analysis confirms a crucial point about ObamaCare which remains poorly understood, which is that the law creates a massive inequity in insurance subsidies for working families with low wages.... The problem is that the subsidies inside the exchanges will far exceed the tax subsidy for employer-paid premiums at the lower end of the wage scale.

However:

CBO believes that other preexisting labor laws will make it very difficult for employers to selectively dump their workers into the exchanges.... But what if CBO is wrong and employers are able to find ways around the existing rules to create a two-pronged approach to coverage, with high-wage workers staying in tax-preferred employer plans and low-wage workers migrating to the exchanges?

You can read the rest of the article here.

posted by James C. Capretta | 10:40 am
Tags: Obamacare, health exchanges, CBO
File As: Health Care