In light of President Obama’s recent speech outlining his plan to create jobs, critics on both sides of the isle question whether or not his plan will be helpful or harmful. Even in unlikely sectors like health care, there is speculation that the Obama bill could be a job killing one. According to industry experts, health care is one of the few sectors that have continued to add jobs despite a persistent economic downturn – about 74,000 in 2010. The problem with the Obama bill is its effect on Medicare and Medicaid.
Impact of Cuts on Healthcare Jobs
Of the previously mentioned is 74,000 healthcare jobs added last year, almost 40% were in the field of assisted living. It is a field which accounts for a fair amount of growth in the overall industry as the American population continues to age. Unfortunately, the vast majority of patients who utilize assisted living do so on Medicare and Medicaid dollars. If the President’s plan is successful in cutting spending for Medicare and Medicaid programs, it could jeopardize the health of many assisted living facilities to the point that they will be forced to close.