Since Obamacare costs more than a healthcare plan provided through an employer, how do people pay for it while taking up basket weaving and pottery-making? Confused, as always.
Good question.
From what I have heard from a few sources, including a tax preparation service here, is that the substitutes are significant for lower incomes, near 100%, so being unemployed or cutting back hours is a way to get them.
That was the basis of this CBO prediction .
Its the old means tested welfare trap that EITC was designed to counter.
If you make little enough, then the subsidies cover most of it.