ObamaCare: Cheap Coverage; But No Job

A Families USA report argues that families would be worse off under presidential candidate, Mitt Romney’s health proposal than the health reform law signed by president Obama.

Although both ObamaCare and RomneyCandidateCare provide help with health insurance premiums through the federal tax system, the former does it through tax credits and the latter through tax deductions. As a result, not only does ObamaCare provide help to more than twice as many people, but the average amount of help provided to each person is also much larger.

The report ignores several important factors. Nearly half of the people ObamaCare is supposed to cover will be enrolled in the Medicaid program. Past research by Obama health advisors, Jon Gruber and David Cutler, have found that half to three-quarters of newly enrolled, Medicaid enrollees were previously insured with private coverage — often this is because employers dropped the employee health plan knowing Medicaid would pick up the slack. Studies have found Medicaid coverage is inferior to private coverage.

In addition, some of the low-income families that may benefit from tax credits may also find themselves without a job. The Patient Protection and Affordable Care Act also fines employers above a certain size who do not offer health coverage. Economists know that the cost of employee health plans comes out of workers’ pay. Workers who earn too little to offset the cost of mandated coverage will likely be priced out of a job.

Comments (9)

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  1. Buster says:

    It appears FamiliesUSA counts only the benefits of ObamaCare; while only counting the costs of RomneyCare.

  2. Nichole says:

    “In addition, some of the low-income families that may benefit from tax credits may also find themselves without a job.”
    This is not fair at all…

  3. bart says:

    A fixed-percentage tax credit would be equivalent to a deduction if we had a flat income tax system with no other exemptions.

  4. Ender says:

    I dont think people fully understand the impact that these fees on businesses will have. Business has simply cant increase payroll costs without increasing profits. Dosen’t happen

  5. Jordan says:

    The CBO/JCT STILL don’t know what the effects of this legislation will be.

    Astronaught? No.
    Fireman? Never.
    I wanna be a tax-paying lab rat when I grew up.

  6. Lucy Hender says:

    It seems the only way for Obama supporters to feel accomplished and like they are going somewhere is by minimizing the other party. If you can’t shine on your own, by providing all the facts and data and being transparent, then you are aware you are doing something wrong and you are ashamed of it.

  7. Alex says:

    These studies are inherently partisan in nature, and all are likely to leave out crucial information in order to skew it to their side.

  8. Robert says:

    Perhaps more people could afford healthcare if the first two years of his presidency were spent on economic recovery. Hmm…