Paul Ryan's Misleading Claim About Health Reform, Poor Families, and Work
Huffington Post - about 3 years
House Budget Committee Chairman Paul Ryan's claim that health reform creates a "poverty trap" that discourages poor families from working has it backwards, as my colleague Jared Bernstein notes. Chairman Ryan's proposals to repeal health reform and block-grant Medicaid would more likely increase work disincentives, particularly among poor parents with serious medical conditions and other ongoing health care needs.
To see why, let's consider a hypothetical Jane -- a very poor working parent with two children and with income of 60 percent of the poverty line (about $11,875). If Jane lives in a state taking up health reform's Medicaid expansion, she can significantly expand her hours or take a much higher-paying job, earning up to $27,310, and still retain Medicaid. Even if her income rises above $27,310, she can get subsidized coverage through the new health insurance marketplaces (also known as exchanges).
As the Congressional Budget Office (CBO) states, "some people who would h
Huffington Post article