Trump’s terrible health care plan is bad for many reasons and a new study has found yet another reason to despise the American Health Care Act.
A new study that was recently published at George Washington University finds that the AHCA could cost America jobs, and not just a few. The study estimates that almost ONE MILLION jobs could be lost within ten years if the AHCA is implemented.
“The GWU study found government spending or subsidies stimulate the economy more than tax cuts. Tax cuts do help, but only in the short term. The way AHCA is set up is that the tax cuts take effect sooner than federal funding cuts, which is why some states see net job growth by 2018. Then, when federal dollars are eventually pulled, states begin to see job losses by 2026.”
The short term job growth looks good, but it is probably being used as a distraction from the long-term effects that the AHCA would actually have on job growth in the U.S.
In addition to potentially increasing the number of uninsured by 23 million and being unequivocally unpopular, House Republicans’ Obamacare replacement plan could leave nearly a million people unemployed.
That’s according to a new study published Wednesday by the Milken Institute School of Public Health at George Washington University and The Commonwealth Fund projects, which finds that the U.S. economy could see a loss of 924,000 jobs by 2026 if the American Health Care Act (AHCA) becomes law.
The study concentrated on coverage-related and tax repeal policies included in the AHCA. Some of the key provisions it said could add to job losses would:
1.Phase out enhanced funding for Medicaid expansion by restricting eligibility in 2020, and imposing either a block grant or per capita caps.
2.Replace premium tax credits with age-based tax credits. The premiums can be five times higher for older individuals, compared to the current threefold maximum.
3.Allow states to waive key insurance rules, like community rating and essential health benefits. (The study does account for the Patient and State Stability Fund, a $8 billion grant meant to relieve states of high-cost patients.)
4.Eliminate the individual mandate tax penalty and premiums hikes for people who do not maintain continuous coverage.
5.Repeal numerous taxes and tax increases, like a tax on high-cost insurance (i.e. the “Cadillac tax”).
It is clear now more than ever that the AHCA bill is despicable and it should NEVER be put into action!