Republicans for a second day seized on a Congressional Budget Office report about the economic impact of the Obama health law, as Democrats strongly criticized the news media coverage of the report's findings about the health reform changes.
At a hearing of the House Budget Committee, CBO Director Doug Elmendorf stood by the report's findings on the health law, telling lawmakers that the law will reduce the size of the labor force over the next ten years.
"We think that the Affordable Care Act will reduce the total number of hours worked in the economy by between 1.5 and 2 percent," Elmendorf said, adding that's equal to over two million full time workers leaving the labor force.
"Who are these workers?" asked Budget Committee Chairman Rep. Paul Ryan (R-WI).
Elmendorf explained these are mainly low income workers, who find that as they make more money, they get less in subsidies to buy that health insurance from the federal government - and that makes it less appealing to keep making more money.
"By providing heavily subsidized health insurance to people with very low income, and then withdrawing those subsidies as income rises, the Act creates a disincentive for people to work," said Elmendorf.
It was a golden sound bite for Republicans, as Democrats immediately tried to undermine the findings of the non-partisan CBO.
"I'm having a hard time understanding how that could possibly make sense," Rep. John Yarmuth (D-KY) bluntly told Elmendorf later in the hearing.
"It's not so much an incentive not to work, as less of an incentive to work," Elmendorf replied.
Republicans quickly pounced on that - making the argument that the Obama health law will hurt the economy by having fewer people in the labor force.
"As a result, that lower workforce participation rate - that lower labor supply - lowers economic growth," said Rep. Ryan.
"Yes. That's right, Mr. Chairman," Elmendorf replied.
Democrats then did their best to lead the CBO Chief through a series of friendly questions as well, pointing out different items in the report dealing with the health law.
"You point out that there is no compelling evidence that part-time employment has increased as a result of the Affordable Care Act," said Rep. Chris Van Hollen (D-MD).
"That's right Congressman," said Elmendorf.
Democrats like Van Hollen also lobbed a series of barbs at the news media, accusing reporters of major "misrepresentations" of the CBO report on the Obama health law.
"They bought hook, line and sinker, some of the talking points from our Republican colleagues," Van Hollen groused.
The bottom line from the hearing was a classic staple of Washington - both parties digging into the same report to find nuggets that bolstered their view of the Obama health law.
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