ObamaCare’s Medicaid Expansion Could Cause 2.6 Million Able-Bodied Adults To Drop Out Of Labor Force

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One of the biggest myths pushed in statehouses across the country is that Obamacare’s Medicaid expansion will be an engine of economic growth. The Obama administration promises that more than 350,000 jobs would be created nationwide in 2015 if all states opted into Obamacare expansion.

But the truth is that expanding Medicaid to able-bodied adults will discourage work, create massive new welfare cliffs and ultimately shrink the economy, not grow it. A new report by the Foundation for Government Accountability outlines how Obamacare expansion could affect the labor force.

Obamacare Expansion Discourages Work

Obamacare’s perverse design discourages work by creating a massive new welfare cliff for able-bodied adults. In states that expand Medicaid under Obamacare, single adults moving above 138 percent FPL would face premiums, deductibles, copays, coinsurance and other out-of-pocket costs nearly $2,000 higher (on average) than those they were subject to under Medicaid.