CHA News Article

Report Finds California Hardest Hit by Mandated Medicare Payment Cuts
State could lose more than 78,000 jobs by 2021

A report issued today details the effects of job losses on the health care industry as a result of the 2 percent sequester of Medicare spending mandated by the federal Budget Control Act of 2011. California would be the hardest hit state in the nation if sequestration is allowed to take effect Jan. 1, 2013, according to the report released by the American Hospital Association, in conjunction with the American Medical Association and American Nurses Association. The report states California will lose 50,000 jobs within the next year and more than 78,000 health care and other related jobs by 2021.

Produced by Tripp Umbach, a firm specializing in economic impact studies, the report shows how reductions in Medicare payments for health care services will lead to direct job losses in the health care sector, reduced purchases by health care entities of goods and services from other businesses that in turn will lay off workers, and reduced household purchases by workers who lose their jobs. As the impact of these cuts ripples through the economy, jobs will be lost across many sectors beyond health care. The full report is attached. In addition, CHA has issued the attached news release on the report’s findings.