Automatic Cuts From Debt Committee's Failure Put 194k Healthcare Jobs on the Line
If the debt reduction committee fails to recommend $1.2 trillion in savings or Congress does not implement their recommended savings, 194,000 hospital and related jobs could be lost to due automatic cuts, according to an analysis by Tripp Umbach.
Under the Budget Control Act, the Joint Select Committee on Deficit Reduction must find and recommend $1.2-1.5 trillion in savings by Thanksgiving. Failure on the Congressional committee's part to find the required savings means the enactment of automatic cuts, including a potential 2 percent cut in Medicare payments.
The potential Medicare cut equates to a reduction of approximately $41 billion from 2013-2021 for hospitals. The change could ultimately lead to nearly 93,000 lost jobs by 2013, reaching more than 194,000 lost jobs by 2021, according to the Tripp Umbach report.
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