Medicaid Cuts Hurt State Economies Findings

Key Findings

5 Percent Cut in Federal Medicaid Spending

Business Activity Lost Due to a 5 Percent Medicaid Cut

In 2011, even a 5 percent cut in federal Medicaid spending would mean that the 50 states and the District of Columbia would lose a total of $13.75 billion that is needed to support health care for vulnerable residents. These cuts would dampen business activity and job creation in every state.
The 10 states with the largest potential loss of business activity attributed to a 5 percent cut in federal Medicaid spending would be New York ($3.8 billion), California ($3.7 billion), Texas ($2.1 billion), Pennsylvania ($1.5 billion), Florida ($1.2 billion), Ohio ($1.2 billion), Illinois ($1.2 billion), Massachusetts ($1.0 billion), North Carolina ($942.1 million), and Michigan ($861.9 million).
Even in the two states with the smallest Medicaid budgets, North Dakota and Wyoming, the potential loss of business activity from a 5 percent cut in federal Medicaid spending would be valued at $36.1 million and $30.7 million, respectively.

Jobs Lost Due to a 5 Percent Medicaid Cut

The loss of business activity due to a 5 percent cut in federal Medicaid spending would result in a loss of jobs in every state across the country.
The 10 states with the largest potential number of jobs lost due to a 5 percent cut in federal Medicaid spending would be New York (28,830), California (28,440), Texas (18,160), Pennsylvania (12,230), Florida (11,320), Ohio (11,270), Illinois (9,280), North Carolina (8,890), Michigan (7,670), and Massachusetts (7,600).
Even in the two states with the smallest Medicaid budgets, North Dakota and Wyoming, the potential loss of jobs due to a 5 percent cut in federal Medicaid spending would be 410 and 300, respectively.

15 Percent Cut in Federal Medicaid Spending

Business Activity Lost Due to a 15 Percent Medicaid Cut

In 2011, a 15 percent cut in federal Medicaid spending would mean that the 50 states and the District of Columbia would lose a total of $41.25 billion that is needed to support health care for vulnerable residents. These cuts would dampen business activity and job creation in every state.
The 10 states with the largest potential loss of business activity attributed to a 15 percent cut in federal Medicaid spending would be New York ($11.4 billion), California ($11.1 billion), Texas ($6.4 billion), Pennsylvania ($4.5 billion), Florida ($3.7 billion), Ohio ($3.6 billion), Illinois ($3.6 billion), Massachusetts ($3.1 billion), North Carolina ($2.8 billion), and Michigan ($2.6 billion).

Jobs Lost Due to a 15 Percent Medicaid Cut

The loss of business activity due to a 15 percent cut in federal Medicaid spending would result in a loss of jobs in every state across the country. (Table 3)
The 10 states with the largest potential number of jobs lost due to a 15 percent cut in federal Medicaid spending would be New York (86,480), California (85,320), Texas (54,490), Pennsylvania (36,700), Florida (33,970), Ohio (33,800), Illinois (27,830), North Carolina (26,660), Michigan (23,020), and Massachusetts (22,810).

33 Percent Cut in Federal Medicaid Spending

Business Activity Lost Due to a 33 Percent Medicaid Cut

In 2011, a 33 percent cut in federal Medicaid spending would mean that the 50 states and the District of Columbia would lose a total of $90.75 billion that is needed to support health care for vulnerable residents. These cuts would dampen business activity and job creation in every state.
The 10 states with the largest potential loss of business activity attributed to a 33 percent cut in federal Medicaid spending would be New York ($25.1 billion), California ($24.4 billion), Texas ($14.2 billion), Pennsylvania ($9.9 billion), Florida ($8.1 billion), Ohio ($7.9 billion), Illinois ($7.8 billion), Massachusetts ($6.8 billion), North Carolina ($6.2 billion), and Michigan ($5.7 billion).

Jobs Lost Due to a 33 Percent Medicaid Cut

The loss of business activity due to a 33 percent cut in federal Medicaid spending would result in a loss of jobs in every state across the country.
The 10 states with the largest potential number of jobs lost due to a 33 percent cut in federal Medicaid spending would be New York (190,260), California (187,690), Texas (119,890), Pennsylvania (80,750), Florida (74,740), Ohio (74,370), Illinois (61,220), North Carolina (58,650), Michigan (50,650), and Massachusetts (50,180).