Tue
Feb 11 2014
02:58 am
The head of the CBO answers the most frequently asked question here in short answer / long answer form.
Are any of you going to fall into the "coverage gap" created in states like ours that don't expand Medicaid eligibility, and will it affect your work choices?
Do any of you have employees that are going to cost you money if they qualify for a subsidy?
I'd like to hear any personal stories of how responsive your labor supply or demand might be to the circles and arrows pictured below:

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Local Media
Lost Medicaid Funding
To date, the failure to expand Medicaid/TennCare has cost the State of Tennessee ? in lost federal funding. (Source)
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Quit?
No gap here but should the headline read 2.5 million people quit their job because of ACA? If that opens up positions for un or underemployed people this is a good thing.
Some of the people will retire and take it easy, others could start new businesses. It will be interesting to see the effects in a couple of years.
My biggest concern is the workers who see their hours cut below 30/wk and thus fall into the gap.
Jobs for new grads
I was talking to a group of college kids and mentioned this very thing. The ability for people to buy affordable insurance means that a many will either quit completely or go part time because they no longer have to work for the insurance.
This should help those new in the job market as well as the unemployed.
Employers playing with employee hours and keeping them part time has been a game they have played for a long time as way of avoiding all full time benefits, including sick time and vacation. At least with the ACA folks can now get health insurance.
Minimum wage
The problem is people working minimum wage for < 30 hours/week don't earn enough for subsidies.
Unless, of course, they are "uniquely American" and work multiple jobs.