ACA repeal could cost California more than 200,000 jobs

December 20, 2016
By: Public Affairs, UC Berkeley

Health care provider taking patient's blood pressure.Repeal of the Affordable Care Act could take away health insurance from millions of Californians, while also eliminating 209,000 jobs and costing the state economy $20.3 billion in GDP, says a new report from the Center for Labor Research and Education at the UC Berkeley.

Center researchers conclude that California’s Central Valley — which is already struggling with high unemployment — will be among the state’s hardest hit regions, because residents there also rely heavily on Medi-Cal.

Not only would California experience substantial job and GDP losses, but the researchers estimate that state and local governments would lose a total of $1.5 billion in tax revenue as a result of declines in income tax, sales tax and other tax revenue.

On the other hand, legislation repealing the ACA could include tax cuts to high-income individuals and insurers, and could eliminate penalties for uninsured individuals and large employers not offering affordable health insurance to their employees. The economic effects of these changes, worth a combined total of $7.6 billion to California’s residents and businesses, are included in the study.  

Read more about how dismantling the ACA could impact California.