For people who recently lost their employee benefits or have gone without health insurance because they couldn't afford it, the government offers subsidies to those who qualify, which is dependent on how much they earn in a given year. However, many people are finding that they're stuck between a rock and a hard place when it comes to receiving financial assistance.
Millions of Americans are falling victim to a snag between state and federal rules, having to pay their own way for insurance because they don't make enough to qualify, the Wall Street Journal reported.
Ernest Maiden, a Birmingham, Ala.-based hair salon owner, learned of this issue after taking a closer look at his pay and what the rules surrounding subsidies state. The paper noted that if he earned another $1,300 per year, the government would pay for virtually all of his expenses. As a result, he'll have to come up with a new solution for how to pay for his health care costs, which tend to be substantial due to having diabetes.
The gap in the law appears to stem from a decision made by the U.S. Supreme Court in 2012, ruling that it was unconstitutional to require states to expand Medicaid coverage. As a result, nearly half of the states have decided to keep the government program as-is, saying that expanding Medicaid diminishes self-reliance, the WSJ noted.
On Feb. 5, the nonpartisan Congressional Budget Office released a report detailing the potential consequences of the ACA from an economic standpoint. Douglas Elmendorf, director of the CBO, noted in Congressional testimony it may reduce worker productivity. However, he's recently dialed back that assertion, according to numerous media reports.
