Harvard-USC Study Predicts New Jobs From Health Care Overhaul. From Where, Exactly Will They Come?

A new study released today, conducted by USC and Harvard, predicts that health care cost increases would slow and that thousands of new jobs will be created as a result of the Health Care Overhaul.

The LA Times story can be found here.

According to the study, the legislation would slow the growth of medical costs, ostensibly freeing up dollars for which employers could use to create 250,000 to 400,000 new jobs a year, over the next decade.

If the bill aims to impose billions of dollars in new taxes on employer groups, individuals, and insurance companies, where exactly, will the savings come from in order to create the jobs?

Transitively, Higher Taxes = Zero Savings = No New Jobs.

In fact, the legislation could have the exact opposite effect. Higher premiums passed along by the insurance companies, coupled with higher taxes on employer groups would lead to a contraction in the job market. This would hold especially true for the small business market. And this has nothing to say about increased FICA, Medicare, and State Tax increases.

Many businesses will throw up their hands, recuse themselves from the business of providing health care benefits altogether, and provide waviers to their employees enabling them to obtain insurance on their own. The waivers, a key component of the Senate HELP bill, would allow employer groups with payrolls over $500,000 to skirt any penalties the legislation would impose on employers who do not provide benefits.

And why does the legislation focus solely on the insurance industry? Aren't hospitals, providers, and the pharmacy companies equally as culpable? Without a unilateral approach, there will be no slowing of any costs; certainly no reductions in premiums as Congress is promising.

J|S