Approximated Employment Effects of the American Health Care Act

The lamp remains illuminated in the top of the Capitol Dome, February 2017.

Undoing the Affordable Care Act, or ACA, will likely mean less government spending on Medicaid and subsidies for private insurance and thus less spending on health care in general. At the same time, the new proposed law, the American Health Care Act, or AHCA, would also cut taxes for higher-income Americans. All three of these factors will likely impact the economy and, thus, employment. Less spending on health care due to cuts to Medicaid and health insurance subsidies will lower employment in the future, while tax cuts could result in some positive effects on jobs. As a result, there will be 1.8 million fewer jobs in 2022 than otherwise would have been, in our estimates.

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