How Proposed Cuts to Medicaid Would Cut Jobs

In the name of reducing our federal deficit, some members of the Congressional supercommittee would rather risk jobs and the lifesaving healthcare services millions of seniors, people with disabilities and children rely on than raise taxes on the richest individuals and corporations in this country.

We do not ‘need’ to cut Medicaid in order to put Americans back to work. If the proposed cuts Congress is considering become a reality, they will have the exact opposite of the desired effect – resulting in the loss of not just healthcare services but also millions of good-paying jobs.

We’ve created a chart using the Families USA “Jobs At Risk” data to provide you with a clearer picture of how cuts to Medicaid would impact jobs and state economies.


Check out the full chart here.

More useful resources and facts after the break on why Medicaid matters for putting Americans back to work.

Why Medicaid Matters For Jobs

The Straight Facts:

  • According to the Economic Policy Institute, the Ryan plan will cut Medicaid by $207B resulting in a private sector job loss of 2.1M over the next 5 years.
  • In another month of otherwise stagnant job growth, more than 44,000 jobs were created in the healthcare sector.
  • Every $1 million in federal Medicaid spending results in 17.1 new jobs. Cutting federal spending on Medicaid, then, means cutting jobs.
  • Healthcare continues to be a growing industry. According to the Bureau of Labor Statistics (BLS), 10 of the 20 fastest growing occupations are healthcare related.
  • 3.2 million new healthcare wage and salary jobs will be generated between 2008 and 2018, more than any other industry.


Much more on how investments in Medicaid create jobs and stimulate the economy on our new campaign page:

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