CBO: O-Care will Cost 2.3M workers
Posted: February 4, 2014 Filed under: Economics, Health and Social Issues, U.S. News | Tags: Capitol Hill, CBO, Congressional Budget Office, Health law, Labor force, Obamacare, Patient Protection and Affordable Care Act, White House 1 Comment
Erik Wasson reports: The new healthcare law will cost the nation the equivalent of 2.3 million workers by 2021, contributing to a $1 trillion increase in projected deficits, the Congressional Budget Office (CBO) estimated in a report released Tuesday.
The nonpartisan agency’s report found the healthcare law’s negative effects on the economy will be “substantially larger” than what it had previously anticipated.
The findings immediately roiled the debate over the healthcare law on Capitol Hill ahead of a midterm election that Republicans hope will be dominated by the fight over ObamaCare.
It triggered a swift pushback from the White House, which sought to dismiss suggestions from Republicans that the healthcare law has contributed to a slower economic recover or would “kill” jobs.
The White House pointed out that the CBO concluded the reduction in labor participation due to the healthcare law was almost entirely because of workers choosing to work less.
“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 report said.
It estimates the law will reduce labor force compensation by 1 percent from 2017-2024 — twice the reduction it previously had projected.
This will decrease the number of full-time equivalent workers in 2021 by 2.3 million, the CBO said. It had previously estimated the decrease would be 800,000 for that year. By 2024, the number rises to 2.5 million.…
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