Goldman Sachs Concludes Obamacare Added 500k Jobs

[GMDino]

http://www.investopedia.com/insights/goldman-sachs-concludes-obamacare-added-500k-jobs/?partner=YahooSA&yptr=yahoo&ref=yfp

Quote:The first Republican attempt to replace Obamacare crumbled before it even hit the House floor last month. But that doesn’t mean the party’s efforts to overturn the lightning-rod healthcare law are over. (See: What If Obamacare Is Repealed?)


Now we have news reports indicating that key Congressional members are devising a new plan that they hope can draw support from the Freedom Caucus as well as more moderate elements in the Republican party.

Does Obamacare Kill Jobs?
One of the Republicans’ central claims about the Affordable Care Act (ACA) is that it kills American jobs. But is that accurate? Not according to Goldman Sachs, which just published a study comparing states that dramatically expanded medical coverage under the legislation with those that experienced only minor changes. (See also: The 5 Industries Driving the U.S. Economy.)


Researchers at the investment bank found that employment in the healthcare and social assistance sectors saw a marked increase after parts of Obamacare went into effect in 2012. Specifically, the authors of the study concluded that for every one-percentage–point increase in medical coverage, healthcare employment increased 0.45%.


Based on the 5.4% increase in coverage nationwide since the law took hold, they estimated that it was responsible for about 500,000 new jobs. That represents 40% of the sector’s job growth during that period.

By contrast, the initial bill the Republicans tried to pass in March would result in 24 million fewer insured Americans over a 10-year period, according to a Congressional Budget Office estimate. Government expenditures on healthcare would fall by $1.2 trillion over that same period.

Body of Research Growing
The Goldman Sachs report comes on the heels of other research also showing a correlation between increased federal spending on healthcare and job growth.

A January report by the non-partisan Economic Policy Institute, for example, suggests that an ACA repeal would lead to as many as 1.2 million fewer jobs in 2019. The organization concluded that because a lack of aggregate demand is weighing down the economy right now – that is, we’re spending less than we’re capable of producing as a country – we’re especially susceptible to a major drop in government outlays.

A recent state-by-state economic analysis by researchers at George Washington University painted an even grimmer picture. It concluded that a repeal of Obamacare would cost 2.6 million lost jobs by 2019, most of them in the private sector. About a third of those positions would be in healthcare, according to their model.

Figure 1. The U.S. economy has gained jobs every month since 2010. According to a Goldman Sachs analysis of the Affordable Care Act, many of those jobs came from the healthcare and social assistance sectors.

Source: The Atlantic

Indeed, growing employment in the healthcare industry was always one of the goals of the Affordable Care Act, according to one of its key architects. As Bob Kocher, a special assistant to President Obama when the bill was being formulated, told Politico, “People on the jobs team were saying we need more middle-class jobs and the best place to create them was in healthcare.”

Of course, what might be a benefit to people in the medical industry may not be great news for the rest of us. After all, consumers of healthcare – and that includes most Americans – ultimately pay the salaries for those new hires. That, theoretically, could translate into higher medical bills.

A Worst-Case Scenario
The Goldman Sachs report does note that the 500,000 new jobs represents the rosiest possible scenario in terms of Obamacare’s effect on the labor market. The number of jobs that a repeal would eliminate could actually be less, the report says, based on “increased demand for other goods and services resulting from the elimination of ACA taxes and from slightly more room for other federal tax cuts or spending increases from the deficit reduction.”

The bank also acknowledges that healthcare employment can be influenced by other factors that their research didn’t take into account. However, it ultimately concluded that a marked reduction in health insurance coverage “would likely be associated with a drag on healthcare employment and healthcare consumption.”

The Bottom Line
This new report is part of a growing body of research that suggests more federal spending on healthcare is actually a boon to the job market, contrary to what some of Obamacare’s critics have asserted. However, that gain could also have negatives, theoretically contributing to higher medical bills for the average American who seeks out medical care. (You may also be interested in reading Trumpcare Is Dead: 'Obamacare Is the Law of the Land.')

Read more: Goldman Sachs Concludes Obamacare Added 500k Jobs | Investopedia http://www.investopedia.com/insights/goldman-sachs-concludes-obamacare-added-500k-jobs/#ixzz4dwW5zI9o 
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[xxlt]

(Sigh) we live in a post fact era. Obamacare is a job killing failure. In other news, ignorance is strength, freedom is slavery, and war is peace.

[*PhilHos*]

Quote:However, that gain could also have negatives, theoretically contributing to higher medical bills for the average American who seeks out medical care.

Correct me if I'm wrong, but wasn't the MAIN purpose of the ACA to LOWER the cost of healthcare? So, whoop de doo, the ACA may have created new jobs, but at least the average American's medical bills went up.

You know what will create even MORE jobs? Higher insurance premiums! Let's raise ALL the premiums so EVERYONE can have a job!!! /sarcasm

[GMDino]

(04-11-2017, 12:45 PM)PhilHos Wrote: Correct me if I'm wrong, but wasn't the MAIN purpose of the ACA to LOWER the cost of healthcare? So, whoop de doo, the ACA may have created new jobs, but at least the average American's medical bills went up.

You know what will create even MORE jobs? Higher insurance premiums! Let's raise ALL the premiums so EVERYONE can have a job!!! /sarcasm

It was to provide more american's with medical coverage.

You know what makes premiums go up?  Insurance companies that put profit over people.

But I guess a new plan that has fewer people getting insurance, loss of jobs AND higher health care cost will be much better because....uh, Obama?

[*PhilHos*]

(04-11-2017, 01:09 PM)GMDino Wrote: 1)It was to provide more american's with medical coverage.

2)You know what makes premiums go up?  Insurance companies that put profit over people.

3)But I guess a new plan that has fewer people getting insurance, loss of jobs AND higher health care cost will be much better because....uh, Obama?

1) Yeah, it FORCED more American's to sign up for medical coverage AND it also FORCED many Americans who already had insurance to pay higher premiums among many other issues, but hey, at least, the cost of health care went UP.

2) This is true, but not all insurance companies do so. I can tell you that the one my company uses is not selfish like that and yet my premiums still went up because of Obamacare. But, I guess it's better to stick your fingers in your ears, wail about selfish insurance companies than actually trying to fix the problems (not that the GOP's most recent plan was any good).

3) While the GOP's most recent plan sucked, there is certainly a myriad of problems with Obamacare that need to be addressed, but I guess it's better to do nothing and let things get worse because ... uh, Trump? 

[GMDino]

(04-11-2017, 01:17 PM)PhilHos Wrote: 1) Yeah, it FORCED more American's to sign up for medical coverage AND it also FORCED many Americans who already had insurance to pay higher premiums among many other issues, but hey, at least, the cost of health care went UP.

2) This is true, but not all insurance companies do so. I can tell you that the one my company uses is not selfish like that and yet my premiums still went up because of Obamacare. But, I guess it's better to stick your fingers in your ears, wail about selfish insurance companies than actually trying to fix the problems (not that the GOP's most recent plan was any good).

3) While the GOP's most recent plan sucked, there is certainly a myriad of problems with Obamacare that need to be addressed, but I guess it's better to do nothing and let things get worse because ... uh, Trump? 

1) It also forced companies to provide insurance for those that needed it the most.

2) So you're saying costs always go up...but now it is the fault of the ACA because...reasons.  For the record our insurance did NOT go up this past year and our coverage got better.

3) Well then why "repeal and replace" with something that provides less for more money?  Oh, right...Obama.

Just because Trump told it things are "getting worse" and Obamacare was a "job killer" doesn't mean it's true.  

[NATI BENGALS]

Health care costs were going up before Obama. Acting like the rising costs are something totally new and only happened because of the ACA is crazy.

How much of a strain has the heroin epidemic put on our health care system? We are all paying for that. With or without ACA itcwould have been a tax payer burden. When they run opiod addiction commercials 100 times a day on TV they are doing it for a reason. Some people are making major money off of that. If only my family had health insurance..

[oncemoreuntothejimbreech]

(04-11-2017, 01:17 PM)PhilHos Wrote: 1) Yeah, it FORCED more American's to sign up for medical coverage AND it also FORCED many Americans who already had insurance to pay higher premiums among many other issues, but hey, at least, the cost of health care went UP.

2) This is true, but not all insurance companies do so. I can tell you that the one my company uses is not selfish like that and yet my premiums still went up because of Obamacare. But, I guess it's better to stick your fingers in your ears, wail about selfish insurance companies than actually trying to fix the problems (not that the GOP's most recent plan was any good).

3) While the GOP's most recent plan sucked, there is certainly a myriad of problems with Obamacare that need to be addressed, but I guess it's better to do nothing and let things get worse because ... uh, Trump? 

You have employer sponsored health insurance so if your costs went up it is due to the same factors that have caused health insurance costs to go up for at least the last half century. That's the nature of health insurance.

My health insurance cost went down last year. This year I'm going to save between $600-700 per month on health insurance. My savings don't have anything to do with Obamacare just like your increased costs don't, either.

I'm so sick of the propaganda coming from both sides.

[Griever]

a lot of the cost in certain states were due to the states not expanding medicare

[Aquapod770]

(04-11-2017, 01:09 PM)GMDino Wrote: It was to provide more american's with medical coverage.

You know what makes premiums go up?  Insurance companies that put profit over people.

But I guess a new plan that has fewer people getting insurance, loss of jobs AND higher health care cost will be much better because....uh, Obama?

A lot of people who gained coverage under the ACA were due to the expansion of medicaid. Hospitals and Doctors take a loss when treating medicaid patients, and those losses get passed on to those who can pay. So costs go up. Crazy, I know. 

[GMDino]

(04-11-2017, 03:11 PM)Aquapod770 Wrote: A lot of people who gained coverage under the ACA were due to the expansion of medicaid. Hospitals and Doctors take a loss when treating medicaid patients, and those losses get passed on to those who can pay. So costs go up. Crazy, I know. 

If a doc wants to charge $75 for a procedure and medicaid only pays 75% he has to charge $100.  then he has to charge everyone who is not being paid for by medicaid the $100 or its fraud.  They aren't "taking a loss" unless they don't price accordingly.

Also, people who have NO insurance and stick the doctors with unpaid bills also make the costs go up.

[oncemoreuntothejimbreech]

(04-11-2017, 03:11 PM)Aquapod770 Wrote: A lot of people who gained coverage under the ACA were due to the expansion of medicaid. Hospitals and Doctors take a loss when treating medicaid patients, and those losses get passed on to those who can pay. So costs go up. Crazy, I know. 

Nineteen states didn't expand Medicaid under Obamacare.

Do you have a breakdown of the numbers for the other 31 states as to who bought individual policies on the exchanges vs. Medicaid expansion vs. who gained employer sponsored health insurance as a result of Obamacare vs. who lost employer sponsored health insurance as a result of Obamacare and if they received Medicaid vs. buying a policy on an exchange vs. paying the fine?

Because if you do I would like to see those numbers.

[xxlt]

(04-11-2017, 01:35 PM)NATI BENGALS Wrote: Health care costs were going up before Obama. Acting like the rising costs are something totally new and only happened because of the ACA is crazy.

How much of a strain has the heroin epidemic put on our health care system? We are all paying for that. With or without ACA itcwould have been a tax payer burden. When they run opiod addiction commercials 100 times a day on TV they are doing it for a reason. Some people are making major money off of that. If only my family had health insurance..

Clearly you haven't been paying attention to who is saying those things. To say they are crazy is to point out the obvious.

[xxlt]

(04-11-2017, 02:49 PM)Griever Wrote: a lot of the cost in certain states were due to the states not expanding medicare

So? Screw the poor!

[Millhouse]

I wont doubt the report due to others out there reporting similar findings, but Goldman Sachs though? They are one of Satan's top companies on Wall Street.

[oncemoreuntothejimbreech]

(04-11-2017, 03:15 PM)GMDino Wrote: If a doc wants to charge $75 for a procedure and medicaid only pays 75% he has to charge $100.  then he has to charge everyone who is not being paid for by medicaid the $100 or its fraud.  They aren't "taking a loss" unless they don't price accordingly.

Also, people who have NO insurance and stick the doctors with unpaid bills also make the costs go up.

There are things Medicaid doesn't even reimburse the provider the cost of what is ordered. But, the same is true of Medicare and private insurances companies. What those things are varies from one company to the next.

For example, one private health insurance company only reimburses the provider $115 for an office visit. Even if that patient needs more than $115 dollars worth of testing.

[GMDino]

(04-11-2017, 03:46 PM)Millhouse Wrote: I wont doubt the report due to others out there reporting similar findings, but Goldman Sachs though? They are one of Satan's top companies on Wall Street.

...and thus are on the current administration's cabinet.  

[Millhouse]

(04-11-2017, 03:53 PM)GMDino Wrote: ...and thus are on the current administration's cabinet.  

Yep. The election was a win/win for them tho lol, as they loved the Clintons too. 

[GMDino]

(04-11-2017, 03:58 PM)Millhouse Wrote: Yep. The election was a win/win for them tho lol, as they loved the Clintons too. 

Oh, no.

THOSE people (the ones who liked the Clintons) were evil and bad THESE (on the current cabinet) are all great people.  Really great.  Some of the best I've heard people say.  

[fredtoast]

(04-11-2017, 01:17 PM)PhilHos Wrote:  I can tell you that the one my company uses is not selfish like that and yet my premiums still went up because of Obamacare.

I can 100% guarantee you that the one your company uses does everything possible to maximize profits.  If they didn't then the stockholders would remove the board of trustees.

I also guarantee that you have no idea why your premiums went up.  They had been going up regularly before the ACA and you have no clue why.