Cutting Medicaid by 5% Could Spur Massive Job Losses

Cutting Medicaid by 5 percent could cost U.S. states $14 billion and trigger massive job losses, according to a study by the National Association of Public Hospitals and Health Systems and reported by Reuters.

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According to the study, the drastic reduction in Medicaid funding could “stifle business activity and job creation in states already struggling through the recession,” according to the report.

Experts say that Medicaid spending boosts local economies because it provides funding to healthcare providers and employees and contributes federal dollars to the community through a federal matching program.

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