A report released this month claims that the American Health Care Act would lead to the loss of a couple of thousand jobs and a lower level of economic activity in Delaware.
This study by researchers at the George Washington University for the Commonwealth Fund examined the potential economic and employment effects of AHCA for every state in the nation.
According to the report, Delaware would see the loss of 2,700 jobs in 2019 5,900 jobs by 2026. Growth in health care employment would barely increase in 2018, with the loss of more than 3,000 jobs in 2026
The House version, according to the study would lead to:
- Restructuring Medicaid funding using per capita caps and block grants.
- Reducing federal funding for Medicaid, encouraging states to scale back expansions.
- Eliminating individual tax penalties for not having health insurance and penalties for employers not offering coverage for employees.
- Replacing income-related premium tax credits with age-based tax credits.
- Repealing Affordable Care Act taxes, primarily benefiting people with high incomes and certain businesses.
Backers of the American Health Care Act, – which would replace many provisions of the Affordable Healthcare Act (Obamacare)- say the legislation would lower overall health care costs and aid employers and individuals.
The Commonwealth Fund, over the years, has also drawn fire from conservatives.
Senate Republicans have been meeting behind closed doors to craft legislation that would presumably deal with some of the more unpopular features of the American Health Care Act.
The study claims most tax cuts will occur immediately, increasing the federal deficit, while coverage-related federal spending cuts will phase in more slowly over time.
As a result, the net effect is additional job growth in 2018 and 2019 and growth in state economies and business output. However, health sector employment would fall immediately by 24,000 jobs in 2018.
The study claims that by 2026, 924,000 fewer people would have jobs and gross state products would shrink by $93 billion. Most of the jobs lost would be in health care, reaching 725,000 jobs lost by 2026.
“This analysis demonstrates that the consequences of this new bill would be much broader and extend well beyond the health care system. Despite initial gains in employment and economic growth, the ultimate decreases in federal spending would cause major reductions in employment and state economic activity,” a release accompanying the study stated.
