The Corner

CBO Head: Obamacare ‘Creates a Disincentive for People to Work’

A day after the Congressional Budget Office’s damning report on Obamacare, the agency’s director confirmed that the health-care law discourages people from working.

“By providing heavily subsidized health insurance to people with very low income, and then withdrawing those subsidies as income rises, the act creates a disincentive for people to work relative to what would have been the case in the absence of that act,” Douglas Elmendorf told the House Budget Committee on Wednesday. “By providing a subsidy, these people are better off, but they do have less of an incentive to work.”

Elmendorf’s comments reflect some of the findings of the CBO’s most recent report, which found the health-care law would reduce employment by the equivalent of about 2.5 million full-time jobs by the end of the decade.


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