New PA Economic Study: Bush Medicare Cuts Compound State Medic...( PA Projected to Lose $96.7 Millio...),Health

PA Projected to Lose $96.7 Million in Economic Activity, $45.5 Million in Lost Wages

WASHINGTON, June 10 /PRNewswire-USNewswire/ -- The American Health Care Association (AHCA) today released a new economic impact analysis finding the Bush Administration's proposed $770 million (national) Medicare Part A nursing home funding cuts will not only cost Pennsylvania seniors $37.7 million in essential health benefits in the year ahead, but cause the state to lose $96.7 million in total economic activity and $45.5 million in lost wages.

According to the new study, prepared by AHCA's research division, the following schedule illustrates the direct, indirect and induced impact of the Administration's pending Medicare cut on Pennsylvania, scheduled to go into effect this summer:

Direct Indirect Induced TOTAL

Business Activity Impact ($)

37,746,103 11,850,174 47,169,152 96,765,429

Income Impacts ($)

23,969,605 3,847,755 17,681,648 45,499,008

Direct Effect represents the impact (e.g. change in employment or revenues) for the expenditures and/or production values specified as direct final demand changes.

Indirect Effect represents the impact (e.g. change in employment) 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

Bruce Yarwo
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