In it, but not of it. TPM DC

The Obama Administration Punts On Another Key ACA Provision

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AP Photo / Pete Souza

Back in 2012, CBO estimated that the employer penalty would reduce the deficit by about $4 billion in fiscal year 2014. But by zeroing out the penalty, the administration will not only forfeit the revenue it would have collected, but it will have removed an incentive for employers to provide coverage themselves. That probably means more workers than expected will land in the exchanges, many of whom will receive subsidies to purchase insurance themselves, which will increase spending under the law and diminish its deficit reducing potential.

Workers who aren't eligible for subsidies will be expected to pay for their premiums entirely out of pocket.