Economists reject Republicans’ claims that health law is decimating Kentucky jobs
| By John Cheves, Lexington Herald-Leader | |
| McClatchy-Tribune Information Services |
In a television ad, U.S. Rep.
Politically, the frequently repeated claim might be effective. Polls show the health care law remains unpopular in much of
Factually, the claim doesn't appear to be accurate.
"It is definitely expected to create jobs, and not just for doctors and nurses," Shanker said. "It will mean the creation of jobs in other areas, including clerical staff for processing claims, more receptionists, more pharmacy technicians and clerks, more janitors, orderlies and ambulance drivers."
About 3,600 additional health care jobs were created over the last year in
"I think the law is definitely going to stimulate the health care segment of our local economies, especially where we've seen substantial drops in the numbers of people who are uninsured. People who were forgoing medical care because they did not have insurance now can access it," said
There are worrisome economic trends in
But these trends are long in the making and have little to do with the health care law, economists say.
"I would be wary of any claim about job loss because of the ACA, just based on the evidence in front of us so far," said
Political rhetoric aside, Fernandez said, it can be difficult in many instances to prove that jobs are being gained or lost chiefly because of the health care law.
"It's been such a short run for the law so far, it hasn't been fully implemented, and it was started during a serious economic downturn that we're still recovering from. So it's not like we live in a world where the ACA is the only thing that's happened in the economy," he said. "I don't know how you separate out this one factor and say 'This is responsible for that.'"
Any companies that fired workers or cut workers' hours to part-time to avoid the cost of the "employer mandate" for insurance coverage were getting ahead of themselves, Fernandez said.
Companies that employ fewer than 50 full-time workers are exempt from having to provide health insurance, so that's most small businesses off the hook, he said. Obama delayed until at least 2016 the mandate for companies employing 50 to 99 full-time workers. Companies with 100 or more full-time workers have until next year to provide insurance to at least 70 percent of their workforce or face financial penalties.
"Honestly, I expect that the employer mandate won't ever be enforced," Fernandez said. "I predict that we'll see it tossed out in a political compromise because it's so unpopular. And if you already have the individual mandate and people are buying insurance through the health exchanges, then it's not really necessary."
Dueling studies
Owners of McDonald's,
In March, the
But the CBO report didn't say 2.5 million jobs have been or would be cut. The CBO predicted that some people whose incomes are approaching the cutoff for federal subsidies to help pay for their insurance will choose to reduce their hours in order to keep the subsidies. Also, the CBO said, expanding
The voluntarily reduced supply of labor could be the equivalent of 2 million full-time jobs by 2017 (out of a civilian labor force of 156 million), rising to about 2.5 million by 2024. Overall, the economy is expected to continue adding jobs during this period, the CBO said.
"The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply rather than from a net drop in business' demand for labor," the CBO wrote. "In the agency's judgment, the effects ... will be small or negligible for most categories of workers."
Healthier workforce
Democratic Gov.
Similarly, a research paper from the Kentucky Cabinet for Health and
This will happen several ways, the authors wrote. More money will be pumped into the health care industry once more people can afford to see a doctor and pay for treatment; people enrolled in federal disability programs because they want
In 2013,
For an employer looking for a place to locate, that's not an attractive picture, the authors wrote. For a low-wage worker without sick leave or insurance, such as a waitress, an illness could lead to unemployment and even bankruptcy.
"Right now, with the ACA, if you're sick you can get medical treatment and not miss a week of work and not maybe lose your job over it," said Fernandez. "It's the difference between someone in your community getting to keep working or not."
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(c)2014 the Lexington Herald-Leader (Lexington, Ky.)
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