A ‘Job-Killing’ Law?

House Republicans misrepresent the facts. Experts predict the health care law will have little effect on employment.

January 7, 2011

Summary

When it comes to truth in labeling, House Republicans are getting off to a poor start with their constantly repeated references to the new health care law as "job-killing."
We find:

• Independent, nonpartisan experts project only a "small" or "minimal" impact on jobs, even before taking likely job gains in the health care and insurance industries into account.
• The House Republican leadership, in a report issued Jan. 6, badly misrepresents what the Congressional Budget Office has said about the law. In fact, CBO is among those saying the effect "will probably be small."
• The GOP also cites a study projecting a 1.6 million job loss — but fails to mention that the study refers to a hypothetical employer mandate that is not part of the new law.
• The same study cited by the GOP also predicts an offsetting gain of 890,000 jobs in hospitals, doctors’ offices and insurance companies — a factor not mentioned by the House leadership.

There’s little doubt that the new law will likely lead to somewhat fewer low-wage jobs. 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. One leading health care expert, John Sheils of The Lewin Group, puts the loss at between 150,000 and 300,000 jobs, at or near the minimum wage. And Sheils says that relatively small loss would be partly offset by gains in the health care industry.

For more detail and analysis visit the FactCheck.org