CBO Confirms Health Care Law Destroys Jobs

[dpas2009]

People currently lose

eligibility for Medicaid if their income rises above a certain level; for working parents, the median income

threshold for eligibility among states was 64 percent

of the FPL in 2009. The health care legislation will

allow parents to work and still qualify for Medicaid

until their income exceeds 138 percent of the FPL.

[dpas2009]

As a result, some older workers will choose to retire

earlier than they otherwise would.

In contrast, another feature of the Medicaid expan-sion removes an existing disincentive to work for

many low-income individuals.

[dpas2009]

Other provisions in the legislation are also likely to

diminish people’s incentives to work. Changes to the

insurance market, including provisions that prohibit

insurers from denying coverage to people because of

preexisting conditions and that restrict how much

prices can vary with an individual’s age or health

status, will increase the appeal of health insurance

plans offered outside the workplace for older workers.

[dpas2009]

But because most workers

who are offered insurance through their jobs will be

ineligible for the exchanges’ subsidies and because

most people will have income that is too high to be

eligible for Medicaid, those effects on financial

resources and marginal tax rates will apply only to a

small segment of the population.

[dpas2009]

Those addi-tional resources will encourage some people to work

fewer hours or to withdraw from the labor market. In

addition, the phaseout of the subsidies as income

rises will effectively increase marginal tax rates, which

will also discourage work.

[dpas2009]

Those subsidies decline in value as

income rises and can, under some circumstances,

drop sharply to zero when income exceeds

400 percent of the FPL. The expansion of Medicaid and the availability of

subsidies through the exchanges will effectively

increase beneficiaries’ financial resources.

[dpas2009]

People who purchase insurance through the new

exchanges will generally be eligible for tax credits to help them pay their health insurance premiums

if their income is between 138 percent and

400 percent of the FPL and they are not offered

coverage through an employer. (They may also

be eligible for reductions in their cost-sharing

requirements.)

[dpas2009]

In particular:

The legislation extends Medicaid eligibility to

most nonelderly residents whose income is below

138 percent of the federal poverty level (FPL)—

including childless adults who are currently ineli-gible for Medicaid in most states. (The FPL in

2010 is $10,830 for a single person and $22,050

for a family of four.)

[dpas2009]

Moreover, many people will be unaf-fected by those provisions and will face the same

incentives regarding work as they do under current

law. The net reduction in the supply of labor is largely

attributable to the substantial expansion of Medicaid

and the provision of subsidies that will reduce the

cost of insurance obtained through the newly created

exchanges, beginning in 2014.

[dpas2009]

That net effect reflects changes in incentives

in the labor market that operate in both directions:

Some provisions of the legislation will discourage

people from working more hours or entering the

workforce, and other provisions will encourage them

to work more.

[dpas2009]

The Congressional Budget Office

(CBO) estimates that the legislation, on net, will

reduce the amount of labor used in the economy by a

small amount—roughly half a percent—primarily by

reducing the amount of labor that workers choose to

supply.

[dpas2009]

This is misleading. What the GOP doesn't want to know is this: the law will cause 800,000 jobs to be lost, yes, BUT here is what the CBO REALLY says about it (note: to the limit on here, I can't fit everything, but I will try): "The Patient Protection and Affordable Care Act

(Public Law 111-148) and the Health Care Educa-tion Reconciliation Act of 2010 (P.L. 111-152) will

affect some individuals’ decisions about whether and

how much to work and employers’ decisions about

hiring workers.

[dolphinsattack]

Just reported today by the New York Times newspaper: Obama set to ease Health Law requirements knowing it's a bad bill and needs major serious changes.

nytimes.com/2011/03/01/us/poli­tics/01health.html?_r=2&partne­r=rss&emc=rss

[dolphinsattack]

It says something when even socialist governments around the world are cutting spending and over the last year most EU nations have become more fiscally conservative and cut back more spending, raised retirement age, slashed pensions than America has. Americans voted the GOP into power last Nov to cut spending and repeal Obamacare and Obamacare will be ruled Unconstitutional by the Supreme Court if no judge dies and Obama can't appoint a far left radical activist judge.

[dolphinsattack]

I wish American Democrats would listen to socialist leaders around the world who even they call upon the U.S. to cut spending as France, Germany, UK, Ireland are doing and going to do. Former Finance Minister of Argentina says the U.S. needs to cut spending drastically too, so does most Americans, only American liberals are on this ever shrinking island of: "More debt is good." as George Soros and Paul Krugman want who were told by Germany to: "F$%^ OFF!"

[dolphinsattack]

If Democrats got MBA's and ran a business for once they would be educated on matters like this, but most are leftwing activist who are in the business to be leftwing bloggers and spend all day online at Media Matters, Huffingtonpost, Moveon.org, DailyKos obsessing over Fox News and trying to catch Fox in lies so they can report about it instead of contributing to this country, they're whole game is to play politics to "WIN" a debate like it's a Madden video game.

[dolphinsattack]

CBO estimates that the legislation will cost $950 billion over a ten-year period. Multiple hidden tax increases in the bill for people making UNDER $200,000 a year

boston.com/business/personalfi­nance/managingyourmoney/archiv­es/2010/03/tax_implication.htm­l

[dolphinsattack]

Democrat State Treasurer of Massachusetts Tim Cahil who left the DNC last year because Romneycare has bankrupted Mass, increased waiting times for doctor appointments, increased insurance costs here in my state that has effected me and many businesses that have left Mass and moved to NH, CT, RI, ME. It's hurt our economy. Deval Patrick and the Dem State Legislature has added so many provisions to Romneycare too and made it worse.

[dolphinsattack]

CBO confims in the video above that his bill reduces employment. I will take the CBO at it's word and all the independent studies that show all the hidden tax increases in this bill over liberal bloggers who go to George Soros funded blog sites. Not one liberal typing on here even owns a business I bet and only supports Obamacare because it's to defend Obama. If this bill was titled: "Bushcare" then all the liberals would be opposed to it. clear sign of lack of integrity.

[dolphinsattack]

Also, Democrat unions and Democrat government workers are exempt from Obamacare, most people who have gotten waivers are Democrats, so far 733 waivers for Obamacare, even Democrats don't want it. All the paid Democrat contributors on cable news are exempt from it who tell the audience it's a great bill.

[dolphinsattack]

Obamacare is a boondoggle for the insurance industry, it handcuffs people to insurance co's and limits their individual choices and options, it's also Unconstitutional. It's funny hjow liberals hate insurance co's but support a Insurance company bill like Obamacare which was written up by the insurance lobby.

[dolphinsattack]

Repealing Obamacare (which most Americans agree) will improve the economy, give confidence to the Stock Market as most small businesses are against Obamacare, even Democrats are willing to work with the GOP to remove many parts of Obamacare that effect small businesses and that limit choices.

[dolphinsattack]

India is the #1 medical tourist destination on earth, people from around the world show up with cash, credit card/debit card and check which is true "pay as you go"

[dolphinsattack]

Best way to get people the fastest highest quality care they need is with the free markets with no insurance and no government in between the patient and provider. Insurance and government regulation increaes costs, hurts advancements in new technology. Purchasing medical care in the U.S. should be just like the consumer electronics industry.

[jaimymoore]

"CBO Confirms Health Care Law Destroys Jobs"

Uh, no. They said it would reduce the workforce by 800,000, because people wouldn't be hanging on to jobs just to pay for healthcare.

Jesus Christ, Republicans are dumb!

[scubafox]

Don't pretend for a second that Republicans care about the number of jobs. What "conservatives" call "free trade" is the big job destroyer.

As of Jun 2010, offshoring cost the US 6M manufacturing jobs (33%) since Mar 1998 and 1M IT jobs since March 2001. The cumulative "trade" deficit (trade debt) from 2000 through the 2010 has been $6 trillion; a direct subtraction from GDP.

"Free trade" fools knowingly participate in the destruction of the U.S. economy and still pretend to care about jobs.

[scubafox]

From "Economic Effects of the March Health Legislation"

-the legislation, on net, will reduce the amount of labor used in the economy by roughly half a percent, primarily by reducing the amount that people choose to work.

-The effect will "reduce unnecessary spending on health care for people who would be insured with or without the legislation ... changes will reduce administrative costs and increase competition among insurers."

People *choose* to not work & reducing costs. That's bad thing?

[BlackRepublican2010]

The Eurocrats just want to lose more jobs so more and more people give up their freedoms. The Eurocrats do not believe in America. They know this bill increases costs & is a framework for a single payer system. Why does Obama cling to this belief America must adopt the policies of nations whose people immigrate here from there? Obama is the last Democrat I will ever vote for. I am still waiting for my change.

[CalBears7]

@BlackRepublican2010 actually, the bill reduces costs (though not as much as a single-payer or public plan would). and as for "being the framework for single-payer"-- it's actually resulting (by design) in the biggest increase in privately insured individuals in the history of the country.

[domevets]

Anyone with common sense knows this law will increase costs, raise taxes and kill jobs. What part of "Obama is an economic illiterate" do people not understand??

[CalBears7]

@domevets how does your common sense tell you this law will increase costs? people with economic degrees more advanced than yours say otherwise.

[scubafox]

@domevets Seriously. You are the "economic illiterate". Google "Single-Payer Health Insurance" "systems thinking" to understand why universal mandates are necessary to "provide for the ... general Welfare of the United States" as the U.S. Constitution provides.

[thefitzs]

Yeah. So people will choose to stop working because they can now sponge off the taxpayers for their health care instead of working and paying for their own.  That's SO MUCH BETTER. Who's stoooopid now?

[scubafox]

@thefitzs People still must pay private corporations for their health insurance. True, some with low incomes will get subsidies; you'd rather they die. No matter that "conservatives" passed policies that drive the vast majority into poverty. Google "Data on Income & Tax Distributions", see "The Data & Why It's Happening".

You evidently love the system the way it was that provided UnitedHealth's William McGuire with a $1.6 billion retirement package. Wonder how many people had to die for that?

[imtallpaul]

HEY STOOPID! The TRUTH is, if you LOOK, because of the PROTECTIONS in the law, many workers will be able to retire earlier and others CAN reduce their hours! God I hate people who don't READ anything and think YOUTUBE is Gospel!

[laeganbree]

People Choosing Not To Work != Destroying Jobs

"We estimated that the legislation, on net, will reduce the amount of labor used in the economy by roughly half a percent, primarily by reducing the amount that people choose to work."

[laeganbree]

Apparently can't link to the text, but you can find the CBO blog with the above quote Google the following:

"Economic Effects of the March Health Legislation"

[CalBears7]

@laeganbree people choosing not to work does not "destroy jobs." when people retire, other people get the jobs. this happens every day. people shouldn't need to stay in the workforce past their retirement age to pay for a surgery the health insurance they've been paying premiums to should've paid for. retirement does not equal socialism.

[laeganbree]

@CalBears7 I'm afraid I wasn't clear. I agree with you. When I wrote "people choosing not to work != destroying jobs" I was using a programming term. The symbol != means "does not equal". I agree with the sentiment. Paul Ryan and the GOP should be ashamed for implying that the CBO director was saying the health care bill destroys jobs. People choosing to leave the labor market has NOTHING to destroying jobs.