like a hawk watches dedicated mouse rushing, Americans have been keeping an eye on Obamacare (also known as the affordable care Act). Why? Since the introduction of Obamacare in 2010, everyone anxiously waited to see if it is effective or not and what impact this has on our country.
Whether you are in favor of Obamacare or not, it has certainly made a splash in the country's health system. The question is, were the good or bad effects? And more specifically, what are the effects of Obamacare was on income inequality? In this article we will discuss several Results brookings.edu regarding the potential effects of Obamacare on income inequality. 
Key findings
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Obamacare will improve the well-being and income Americans in the bottom fifth of the income distribution.
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Brookings projects that revenues in the bottom one-fifth of the distribution will increase by nearly six percent. Those in the bottom of a tenth of the distribution will increase more than seven percent.
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Most Americans already have health insurance coverage and will be left largely unaffected by Obamacare.
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Those earning subsidized insurance will see bigger gains as a percentage of their income.
How Obamacare affect income inequality
Before getting into the details, you may ask be how Obamacare would affect income inequality. This is a valid question to ask. In short, revenues are affected by Obamacare simply because of the premium support health insurance and expanded Medicaid coverage. The costs of these provisions are offset by tax distributed in the population. This, in turn, affects income. And depending on the situation of each individual, it may help or hurt their income.
Obamacare will increase the income of Americans down 2/10 of the income distribution
The purpose of Obamacare is to make more affordable health coverage by reforming the insurance and subsidizing health insurance premiums for families with low and moderate incomes.
New grants ( tax credits ) are created through a Medicaid expansion and the introduction of credits refundable tax for purchasing insurance through new state health insurance exchanges. Since Medicaid is costless to the low-income population and because the refundable tax credits for families with incomes below the federal poverty level (FPL ), most beneficiaries of public spending fall under the lower half of the income distribution.
also income affected by Definition of household income
according to Brookings, "monetary income of the Census Bureau 'measure does not define' health insurance as income. As such, Obamacare has little effect on income, including those at the bottom of the income distribution. Those at the bottom of the income distribution may see a slight decrease or increase in cash income.
Even using a broader definition of income account a portion of the value of insurance, Americans in the bottom tenth of the distribution gain very little. This result says more about how income is defined than it does on how Obamacare affects low-income households.
Experts Facing income definitions Challenge
experts see the shortcomings of the income definitions that exclude health insurance, but find a solution on how to include a challenge. The Census Bureau uses a term sometimes called "expendable income" when the protective value of free or subsidized health in income is included. The fungible value of insurance premium included full contribution made by employers on behalf of their workers.
This also includes part or all of the subsidies granted by the government. However, this includes families who have sufficient cash income to pay for basic food and housing.
When income exceeds this threshold, all or part of the value of health benefits funded by the government included. In the event that a family does not have enough cash income to pay for food and basic needs of shelter, no part of the value of the government insurance is considered income
Related :. After 5 Years of Obamacare - What's the verdict? [ACA Series]
employer-sponsored health insurance changes will affect income
According to the Brookings report, registration of health project experts employer-sponsored insurance will decrease in the coming years. Some workers earn coverage of the employer while others enroll in plans due to penalties if they choose not to participate in the current employer.
Some employers may drop coverage for their part-time employees while others will leave their employer map simply because the cheapest coverage is available elsewhere. Because of these factors, health insurance provided by the employer is expected to contract by 5.9 million, or just over three percent of the population under 65
change of health insurance provided by the employer will lead to changes in income and money on income measured in more complete definitions. Basically, if the health costs of an employer fall, many of these savings along to their workers in the form of higher wages
Related :. Is price stability necessary for the ACA to succeed? [ACA Series]
Conclusion
The primary function of Obamacare, according to the administration, is to provide affordable health care to millions Americans. However, whether intentional or not, the unintended effect of Obamacare on income inequality is widespread for many Americans -. At that Obamacare will improve the welfare and incomes of Americans in the bottom fifth of the income distribution
What is your opinion on how Obamacare affects income inequality? Has it helped or made worse? Comment below.
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