Tens of thousands could lose their jobs from Medicaid cuts

Tens of thousands could lose their jobs from Medicaid cuts included in a Republican budget proposal sponsored in April 2011 by Rep. Paul Ryan (R-Wis.), costing U.S. states $14 billion and effectively depressing spending among hospitals, nursing homes, and drug companies, among others, according to a study by Families USA.

“Such a drastic reduction would stifle business activity and job creation in states already struggling through the recession,” says the National Association of Public Hospitals and Health Systems, a Washington, D.C.-based industry group, in an Oct. 2011 Policy Brief.

The study outlines how states could be affected in terms of business activity and job loss in the event of 5%, 15% and 33% Medicaid cuts. Families USA notes that under the Republican debt reduction plan, Medicaid would be reduced by 5% in 2013, by 15% in 2014, and so on in incremental stages throughout the next ten years, culminating with 33% in 2021.