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Warning: Inadequate Low-Income Subsidy Design Can Cause Problems for Health Care Reform

Warning: Inadequate Low-Income Subsidy Design Can Cause Problems for Health Care Reform

This report examines potential adverse consequences of low-income subsidy systems contained in the leading health care reform approaches including: work disincentives as a result of high marginal taxrates; employer incentives to drop coverage; and loss of coverage due to budgetary control mechanisms.

Note: This publication is no longer in circulation. However, a copy may still exist in the Foundation’s internal library that could be reproduced. Please email order@kff.org if you would like to pursue this option.

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Filling the need for trusted information on national health issues, the Kaiser Family Foundation is a nonprofit organization based in Menlo Park, California.