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Health reform expected to create up to 4 million jobs

A new report shows that healthcare reform could create up to 4 million new jobs.

The report, released Friday by the Center for American Progress and the Leonard D. Schaeffer Center at the University of Southern California, combines data from David Cutler of the Center for American Progress and Neeraj Sood of the Leonard D. Schaeffer Center for Health Policy and Economics to forecast the job-creating effects of healthcare reform.

“One important way to create jobs is to slow the growth of medical spending,” the report said. “If healthcare cost increases slow down, then businesses will find it more profitable to expand employment, and workers will more readily move into those new jobs.”

The report combines Cutler’s assertion that reform will slow healthcare cost growth with Sood’s assertion that every 10 percent reduction in excess healthcare cost growth – a decrease in cost growth from 2.2 percentage points above the Gross Domestic Product  to 1.98 percentage points –lcreates about 120,000 jobs.

The study contends that healthcare reform could increase the number of jobs in the United States by about 250,000 to 400,000 per year over the coming decade. Also, by 2016, reform will create more than 200,000 new jobs in manufacturing and nearly 900,000 jobs in services.

The full report can be found here.