Health Care Reform: Implications of a Two Subsidy System

As this slide-show depicts, subsidies provided through ObamaCare for lower- and middle-class workers who receive health-care through the government-run exchanges would be much greater than the tax-breaks provided to lower- or middle-class workers who receive employer-provided health insurance.  This would lead employers to drop these workers’ insurance and let them be covered through the exchanges, at taxpayer expense.  Thus, ObamaCare is not only a new health-care system but a new welfare and tax system, which would lead to the segregation of the labor market:  upper-income workers would continue to get insurance through their employers; lower- and middle-class workers would eventually get it through the government.