Posted on August 29, 2011 15:48
Categories: Medicaid | Legislative and Regulatory Issues | State and Local
Topics: Health Care Reform | Legislation (National) | Medicaid | State Data
On June 29, Families USA released a report examining Medicaid cuts outlined under U.S. Rep. Paul Ryan’s (R-WI) $3.5 trillion FY2012 budget proposal, approved by the U.S. House on April 15. In addition to repealing most provisions of the national health care reform law, the budget would also convert Medicaid into a block grant program beginning in 2013, reducing state payments by 5 percent in 2013, 15 percent in 2014, and 33 percent in 2021. Based on an economic modeling tool used by the U.S. Department of Commerce to assess the impact of major events on regional economies, Families USA’s analysis finds that the Medicaid cuts would risk a total of 35,210 jobs and $4.2 billion in economic activity. The report estimates that the cuts would harm program enrollees, reduce business activity, and contribute to job losses. The report also provides state-level estimates of the impact of each cut on business activity and jobs.
From the report:
The Medicaid program is a unique federal-state partnership. It gives states great flexibility to design their programs and control their spending. Every state Medicaid program must cover certain very low-income children, pregnant women, and some seniors and people with disabilities, and it must provide them with, at minimum, a defined set of basic health benefits. However, aside from these minimal requirements, states have broad authority to expand Medicaid to more people and/or cover more services. Each state’s policy makers must determine who will be covered, what kinds of health care services will be covered, how much the state will spend overall, and where Medicaid fits among competing demands for limited state dollars.
Full report: Jobs at Risk: Federal Medicaid Cuts Would Harm State Economies (PDF | 335 KB) 
Families USA. (2011). Jobs at risk: federal Medicaid cuts would harm state economies.
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