Cooper’s Obamacare expansion will reduce work incentives…

Excerpt From: Carolina Partnership For Reform. Written By: Bob Harris.

Governor Cooper claims his illegal Obamacare expansion for able-bodied, childless adults will create jobs. But research from Texas A&M, Georgetown, and the University of Illinois at Chicago casts big doubts on the governor’s sales pitch.

The study compares recipients enrolling in Wisconsin’s 2009 Medicaid expansion for able-bodied, childless adults with those on a waiting list. The result was a work reduction of up to 10% for those getting benefits compared to those waiting.

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The study concluded ”In light of these results, policymakers should be prepared for a reduction in labor supply among childless adults affected by the Medicaid expansion under the Affordable Care Act. These labor supply effects may be sufficiently large to be noticeable economy wide. For exam ple, if 21.3 million additional adults gain Medicaid coverage following the ACA expansions, then approximately between 511,000 and 2.2 million fewer individuals will be employed as a result of the labor supply response (corresponding to our labor supply estimates ranging from 2.4 and 10.5 percentage points). These aggregate numbers would be equivalent to roughly a 0.2 to 0.9 percentage point drop in the labor force participation rate.”

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