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New NV Economic Study: Bush Medicare Cuts Undermine State and Local Economic, Jobs Base
Date:6/12/2008

State Projected to Lose $6.2 Million in Economic Activity, $3.1 Million in Lost Wage

WASHINGTON, June 12 /PRNewswire-USNewswire/ -- As Congress returned to Washington this week following its Memorial Day district work period, the Nevada Health Care Association (NHCA) released a new analysis finding the Bush Administration's proposed $770 million Medicare Part A national nursing home funding cuts will not only cost Nevada seniors $2.9 million in essential health benefits, but cause the state to lose $6.2 million in total economic activity and $3.1 million in lost wages.

According to the new study, prepared by the American Health Care Association (AHCA), the following schedule illustrates the full economic impact of the Administration's pending $2.9 million Medicare cut on Nevada, scheduled to go into effect this October 1, 2008:

Direct Indirect Induced Total

Business Activity

Impact ($) 2,874,502 670,703 2,695,398 6,240,603

Income Impacts ($) 1,831,757 225,902 1,069,231 3,126,890

Direct Effect represents the impact for the expenditures and/or production values specified as direct final demand changes.

Indirect Effect represents the impact caused by the iteration of industries purchasing from industries resulting from direct final demand changes.

Induced Effect represents the impacts on all local industries caused by the expenditures of new household income generated by the direct and indirect effects of final demand changes.

Total Impact is the sum of the direct, indirect and induced effects.

Labor Income is the sum of employee compensation and proprietary income.

Economic Impact Analysis: Impact Analysis for Planning (IMPLAN) software, Minnesota IMPLAN Group, Inc., 2006 data.

Copyright, American Health Care Association, 2008

"The Bush Administration's proposed Medicare cuts not only threaten Nevada seni
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SOURCE American Health Care Association
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