Lost Jobs + Increased Costs
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Posted on Monday, Jun 25, 2012
Even though the Patient Protection and Affordable Care Act (PPACA) is being challenged in court, and even though its main provisions have yet to be implemented, we are already seeing some of the negative consequences.
American Families Pay More $$$
Remember when health care reform was supposed to make coverage affordable and accessible? So far, this isn’t happening. The average family is paying $2,400 more for health insurance premiums since 2009.
Job Cuts and Slowed Hiring
Increased household costs might not be as big of a problem if Americans were finding new jobs and increased salaries and benefits. But that isn’t happening. A few telling points…
- The National Retail Federation says that the health reform law’s penalties on businesses “are affecting expansion, franchising, and hiring decisions” among the nation’s retailers. The NFIB also reports a significant elimination of employer health plans.
- Director of the non-partisan Congressional Budget Office (CBO) Doug Elmendorf testified before the U.S. House Budget Committee that the health care law will result in approximately 800,000 fewer full-time jobs.
- A chilling example: medical device maker Stryker Corporation says it will cut its workforce by 5% in response to new taxes under the health care reform law.
It would be great if we could wave a magic wand and make health care free and still maintain the quality of care we have come to depend on. But that wand doesn’t exist. Economically, the best way to control costs and improve quality is through competition. Unfortunately, this principal seems to have been overlooked in the rush to reform health care.