After a highly publicized report from the Congressional Budget Office indicated that insurance benefits gained through the Affordable Care Act may have adverse consequences on the average worker, the nonpartisan group recently dialed back some of its assertions.
In a blog post on its website, the CBO first addressed the statement that more than 2 million full-time workers could see their hours cut substantially 10 years from now, National Journal reported.
“That analysis has attracted a great deal of attention and raised several questions,” the post indicated. “Because the longer-term reduction in work is expected to come almost entirely from a decline in the amount of labor that workers choose to supply in response to the changes in their incentives, we do not think it is accurate to say that the reduction stems from people ‘losing’ their jobs.”
On Feb. 5, Douglas Elmendorf, CBO’s director, told lawmakers on the House Budget Committee that because the government provides subsidies for health insurance, and then reduces the amount as individuals’ earnings increase, it could reduce individuals’ incentive to work.