How Will the Affordable Care Act Affect Jobs?

How Will the Affordable Care Act Affect Jobs?

March 21, 2011

In this report, the authors examine how the Affordable Care Act (ACA) will impact labor costs and the demand for labor. They conclude that the ACA will not have noticeable effect on net levels of employment for three reasons - (1) the net new expenditures are too small relative to the overall size of the economy; (2) the negative effects on jobs of Medicare premium cuts and new taxes will be offset by the expansion of coverage through Medicaid and income related subsidies that will likely increase employment; and (3) the new law will not affect the most firms either because they already provide private insurance that meets federal standards or they are exempt from the new requirements because they employ fewer than 50 workers.

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Health Policy Center
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