Congressional Budget Office Report Forecasts People Will Work Less Hours Due To Lower Healthcare Costs Under Affordable Care Act/Obamacare
The Congressional Budget Office, a non-partisan budget oversight and analysis group within Congress, issues regular reports about the Federal Budget. The 2014 Budget and Economic Outlook report noted:
the ACA will reduce the total number of hours worked, on net, by about 1.5 percent to 2.0 percent during the period from 2017 to 2024, almost entirely because workers will choose to supply less labor—given the new taxes and other incentives they will face and the financial benefits some will receive…The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor, so it will appear almost entirely as a reduction in labor force participation and in hours worked relative to what would have occurred otherwise
In other words, the Affordable Care Act lessens the financial burden of healthcare on certain workers who, as a result, may choose to “voluntarily leave their jobs or cut back their hours without fear of losing health insurance” or because of lower health care costs in general.