The AHCA Could Result in Thousands of Jobs Lost and a Battered Economy
Jobs across America could be cut as a result of the proposed health care reform bill, according to a new study.
The American Health Care Act, backed by President Donald Trump, would see an early gain of 864,000 jobs nationally, but that would be undone by the 924,000 jobs that would be lost by 2026, the report stated. Approximately 725,000 of the jobs lost would be in the health care sector and be the result of changes to the premium tax credit and Medicaid funding cuts that will phase in over that time.
“They kick in a little later and get gradually deeper and deeper then slowly but surely the coverage cuts are outweighing the affects of the tax repeal,” said Leighton Ku, director of the Center for Health Policy Research at Milken, in an interview with the Tennessean. “Then they overwhelm it.”
The study was conducted by the Commonwealth Fund and the George Washington University Milken Institute of Public Health.
Tennessee, the tenth hardest-hit state, for example, is projected to lose 28,400 jobs over the next nine years, with its gross state product reduced by $3.7 billion as a result.
In 2018, should the bill pass, there would be a reduction of 24,000 jobs, despite an increase in other sectors offsetting the losses some.
Many of those losing jobs would be from hospitals, pharmacies, and physician offices. The knock-on effect would be felt in other sectors like construction, retail, and other jobs that will suffer from a lack of money in the system.
The AHCA has been under fire from a variety of critics, with some bemoaning the return to a stricter system that was in place before the Affordable Care Act, a system where pre-existing conditions were not automatically qualified for coverage.
The Congressional Budget Office has scored the AHCA and projects that 23 million Americans would lose coverage by 2026 should the bill become law.
At the moment, the bill is being reviewed by Congress. But with Republicans in control of both houses, and the vehement disapproval of the ACA and promises to repeal and replace the act by Trump, there is mounting pressure to find a substitute to the current healthcare system. The problem is that many Americans do not want to revert back to the previous state of health care and have been seen confronting lawmakers in town halls across the country.
“Study: AHCA could cost Tennessee 28k jobs,” The Tennessean, June 13, 2017.