Monday, January 10, 2011

FactCheck.org: Health reform does not 'kill jobs'; GOP disagrees

In their report released last week, Republicans in the U.S. House said the new health reform law will be "job-killing," but FactCheck.org has concluded that is not necessarily the case.

The Republican report, released Jan. 6 and entitled "Obamacare: A Budget-Busting, Job-Killing Health Care Law," cites a study predicting 1.6 million lost jobs, but "fails to mention that the study refers to a hypothetical employer mandate that is not part of the new law," FactCheck reports. It says the report also fails to mention that the same study predicts a gain of 890,000 jobs in hospitals, doctors' offices and insurance companies.

"There's little doubt that the new law will likely lead to somewhat fewer low-wage jobs," FactCheck reports. "That's mainly because of the law's requirement that, generally, firms with more than 50 workers pay a penalty if they fail to provide health coverage for their workers." John Sheils of The Lewin Group said that loss would be between 150,000 and 300,000 jobs. But that loss would be partly offset by job growth in the health-care industry, says FactCheck, a service of the University of Pennsylvania's Anneneberg Public Policy Center. (Read more)

However, Republicans like U.S. Rep. Ed Whitfield of Kentucky's First District, right, say the new health law will have fiscal and economic consequences. Their reports says it "contains a number of provisions that will eliminate jobs, reduce hours and wages, and limit future job creation." It further contends that studies show it will "cost taxpayers more than originally estimated and may exacerbate the nation's dire fiscal condition."

Whitfield said in a statement on Jan. 7, "We must repeal the job-killing Obamacare health bill and enact solutions that lead to quality care without costing much needed jobs or placing onerous burdens on America's small business owners." Whitfield is the new chairman of the Energy and Environment Subcommittee of the House Energy and Commerce Committee.

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