Primary tabs
Location
Repealing Health Care Reform
High Cost to the Economy
SUMMARY
- The health care industry is the only sector, along with education, that has continued to grow during the economic downturn
- There is no evidence the Affordable Care Act will increase costs for employers or discourage employers from hiring.
- The Affordable Care Act will reduce the deficit by $143 billion over 10 years.
The United States House of Representatives will vote on legislation to repeal the Affordable Care Act on January 19, 2010. The Affordable Care Act passed on March 23, 2010 and several provisions, such as preventing insurance companies from rejecting individuals with pre-existing conditions, have already begun to benefit American families. Most provisions of the new law will not take effect until 2014. A repeal of health care reform would limit the improvements to the health care delivery system and negatively impact the economy.
Benefits of the Affordable Care Act
- The Affordable Care Act will expand coverage for 32 million people, and many individuals and families will receive tax credits to make it easier to purchase insurance.
- The Affordable Care Act will improve access to primary care, expand access to community health centers where many low-income patients access care as well as provide no-cost preventive care.
- This will help reduce disparities in accessing high-quality health care for African Americans who are roughly twice as likely to be uninsured as the rest of the population.
Health Care Sector Jobs Continue to Grow
Over the course of the recession, the health care industry is the only sector, except for education, that has continued to demonstrate growth. Since 2001, 1.7 million new jobs have been added in the health-care sector, which includes related industries such as pharmaceuticals and health insurance. While the unemployment rate fell by 0.4 percentage point to 9.4 percent in December 2010, the number of jobs continues to grow in health care and little has changed in other major industries. This trend is projected to continue.
The Affordable Care Will Not Discourage Hiring
Assertions that the health care reform law will discourage employers from hiring workers are unfounded. According to the Congressional Budget Office (CBO) health reform will have a little impact on premiums for health insurance offered by employers and will most likely reduce the costs for employers. For employers with more than 50 workers (who account for 70 percent of the total insurance market), CBO estimates that the law will reduce average premiums in 2016 by between 0 and 3 percent. Most small businesses will also benefit, because of provisions that provide for two years of federal tax credits to defray some health insurance costs. Under reform businesses are also going to be able to offer more comprehensive health insurance coverage.
The Affordable Care Act Reduces the Deficit
An estimate of repealing the Affordable Care Act, prepared by the Congressional Budget Office, shows an increase in the deficit by $230 billion by 2021 and roughly over a trillion dollars, in the second decade. The CBO also finds maintaining the provisions of the Affordable Care Act will decrease the deficit by $143 billion over 10 years. A repeal of the law would significantly worsen the long-term fiscal burdens on American businesses and families.
National Urban League Policy Institute is the Washington, DC-based public policy research and advocacy arm for the National Urban League, dedicated to the National Urban League’s 100 years old mission of economic empowerment and civil rights.To speak with our experts on this topic, please contact the National Urban League Policy Institute on 202-898-1604.
