ObamaCare Insures More Unemployment : Employers Fear ACA Regulations

More bad news coming from the Affordable Care Act, ObamaCare, more then a million people will lose their jobs due to companies moving to protect themselves from the ACA mandates for health insurance. WOW who knew?

Given the Obama administration hold on the employer mandate until 2015 until after the elections in 2014, the Obama administration believes employers will fall for this nonsense and hire more employees and there by decide that if they contribute to Obama Democrats, they can escape this crushing mandate all together.

I believe the people responsible for the success of the corporations can see through such buffoonery and will not fall for this political move. Unemployment will continue to rise as employers seek to protect themselves from ObamaCare.

ObamaCare May Cause Decline in Employment
Source: Craig Garthwaite, Tal Gross and Matthew J. Notowidigdo, "Public Health Insurance, Labor Supply, and Employment Lock," National Bureau of Economic Research, July
July 17, 2013

In a new study for the National Bureau of Economic Research, researchers Craig Garthwaite, Tal Gross and Matthew J. Notowidigdo study the effect of public health insurance eligibility on labor supply by exploiting the largest public health insurance disenrollment in the history of the United States.

• In 2005, approximately 170,000 Tennessee residents abruptly lost public health insurance coverage.
• Using both across- and within-state variation in exposure to the disenrollment, the authors estimate large increases in labor supply, primarily along the extensive margin.
• The increased employment was concentrated among individuals working at least 20 hours per week and receiving private, employer-provided health insurance.
• They explore the dynamic effects of the disenrollment and find there was an immediate increase in job search behavior and a steady rise in both employment and health insurance coverage following the disenrollment.

The results suggest a significant degree of "employment lock" -- workers employed primarily in order to secure private health insurance coverage. The results also suggest that the Affordable Care Act -- which similarly affects adults not traditionally eligible for public health insurance -- may cause large reductions in the labor supply of low-income adults.

Indeed, the authors estimate that between 840,000 and 1.5 million childless adults in the United States currently earn less than 200 percent of the poverty line, have employer-provided insurance and are not eligible for public health insurance.  Applying their labor supply estimates directly to this population, the authors predict a decline in employment of between 530,000 and 940,000 in response to this group of individuals being made newly eligible for free or heavily subsidized health insurance.