Several million people will reduce their hours on the job or leave the workforce entirely because of incentives built into President Barack Obama's health care overhaul, the Congressional Budget Office said Tuesday.
That would mean job losses equal to 2.3 million full-time jobs by 2021, in large part because people would opt to keep their income low to stay eligible for federal health care subsidies or Medicaid, the agency said. It had estimated previously that the law would lead to 800,000 fewer jobs by that year.
The new findings could provide a new political weapon for GOP opponents of the overhaul, though the White House pointed out that the reduction would be due to voluntary steps by workers rather than businesses cutting jobs.
"CBO's findings are not driven by an assumption that [the health care law] will lead employers to eliminate jobs or reduce hours," said White House press secretary Jay Carney.
The agency also reduced its estimate of the number of uninsured people who will get coverage through the health care law. Budget experts now say about 2 million fewer people than had been expected will gain coverage this year, partly because of the website problems that prevented people from signing up last fall when new markets for subsidized private insurance opened.
On a positive note, the new estimates also say that the health care law will, in the short run, benefit the economy by boosting demand for goods and services because the lower-income people it helps will have more purchasing power.
The health care website woes have largely been cleared up, but the nonpartisan congressional analysts said they expect 1 million fewer people to enroll through the new insurance exchanges than had been expected, for a total of 6 million in 2014. Enrollment will pick up in 2015, topping 20 million in 2016 and beyond, they say.
The Congressional Budget Office also revised its Medicaid projection down by 1 million, for a new total of 8 million sign-ups in 2014. About half the states have accepted the health law's Medicaid expansion.