AnnotatedOpinions.com

Ignore for a moment that the bill promises [subsidies] for a family making $88,200 but not $88,201, the income at which the cap is
lifted. (How fair is that?). [AO: Subsidies and laws in general, always start and end somewhere. One might have a strong argument where the end is abrupt rather than being phased in but the health insurance bill has a phased-in subsidy. One who complains about subsidies ending has a lot to complain about because so many programs start and end somewhere.   

Take the tuition interest tax credit. It is phased-out for those who earn between $48,000 and $58,000 ($96,000 and $116,000 couple). Those who make $58,001 ($116,000 couple) cannot claim the tuition interest tax credit. By the writer’s reasoning, this is also unfair. But surely the line must be drawn somewhere?] 

. . . focus on Jane, a primary breadwinner making $48,000 (in 2016) to support her family of four. If Jane is offered insurance by her employer that meets the test, she must accept it or pay a fine. That means Jane ends up paying for the entire cost of, say, a $14,100 policy, according to some economists. They say she pays the premiums out of pocket and the remainder indirectly because employers offer reduced paychecks to offset the cost of their share of health insurance.  

Now, meet Julie, who also makes $48,000 and is not offered insurance at her job. Julie heads to the newly created exchange to purchase the same policy. But it costs her only $5,300. The rest – about $9,000 – comes from federal subsidies.  

Fair? [AO: Yes, fair. The point the writer misses is that Jane’s employer is not paying her $48,000. Given that employers know the law and recognize that Jane will have to accept the policy it offers or she pays a fine, when the employer hires Jane and offers her a salary of $48,000 and a health insurance plan that cost $14,100, the employer is actually offering her a “take-home” salary of $33,900. This is a fact that they both recognize. As a result, when Jane is considering job offers from Company A (salary, $48,000 with health insurance cost of $14,100) Company B (salary, $48,000 and health insurance cost of $5,000) and Company C (salary, $48,000 with no health insurance), she understands exactly the “take-home” salary the employers are offering and can decide accordingly. If she chooses the $48,000 with $14,100 health insurance, no one can later claim that it is unfair.]  

Of course, it’s also predictable what will happen next. In the interest of fairness, Congress will rush to expand insurance subsidies to everyone. [AO: Not necessarily. The marketplace can and will move faster than congress. Employers, recognizing the fact that health insurance is a cost that is now exposed to employees, will adjust salaries in recognition of this reality. Currently, too many employees don’t realize that health insurance payments made by their employer represent a portion of their salary. Now, employees will recognize this and employers will make compensation decisions in light of this reality. ]