cliffCNBC reports on the latest hitch with Obamacare, the subsidy cliff.  If an individual or family works too much, they could end up costing themselves thousands in government handouts available through the health care law.

Under the PPACA, insurance subsidies are available to people or families whose incomes total 400% of the poverty level.  For a single person, the maximum a person can earn to receive a subsidy is $45,960 and for a family of four, the maximum is $94,200.

If an individual or family goes over the maximum income level by even $1, they will lose their insurance subsidy and be forced to pony up the full cost of their policy on the Obamacare exchange.  This problem, of course, is inherent to all entitlements which are based on income level.  But with the subsidy cliff, there are two disincentives at play — not only is the subsidy lost from earning too much, but because of the Obamacare mandate to carry insurance, the individual or family will have to work significantly more to make up for the lost subsidy.  It would be illegal for them to choose not to purchase insurance even if they can’t afford it.

CNBC gives an example of a 50 year old couple in Ohio.  If the couple makes up to $62,040,  they can receive a subsidy for $3,452 to buy a policy on the exchange that costs $9,346.  If the couple makes just $1 more than the $62,040, they lose their subsidy and will have to earn at least $65,492 to make up for the lost entitlement.

So, with Obamacare we have perverse incentives affecting the workforce.  The ACA’s employer mandate encourages employers to move workers to part time or lay them off altogether and the subsidy cliff incentivizes workers to curtail their hours and dollars earned.  Turns out the Patient Protection and Affordable Care Act is just one big anti-work law and really needs to be renamed.  The Work Curtailment and Wealth Redirection Act is a much more appropriate moniker, especially to those of us that want to call it like it is.

Read CNBC’s full report, “Look out below!  Work more, get less in Obamacare ‘cliff'” here.