Report says Medicaid Cuts Would Cost Georgia Jobs and Revenue

By Michelle Wirth

Atlanta, GA – As congress begins engaging in talks over whether to raise the country's debt-ceiling limit, deep cuts to Medicaid could be on the table. A new report by a health care consumer organization says if cuts put forward by House Republicans are enacted, it would put jobs in Georgia and other states in jeopardy.

The report examines the impact of plan that was put forward by Wisconsin Republican Representative Paul Ryan. Ryan's plan calls for a 5% cut in federal funding to state Medicaid programs in 2013. Ron Pollack with Families USA says that would mean the loss of more than 5800 jobs in Georgia and $670 million in lesser business activity.

"Every federal Medicaid dollar that flows into a state stimulates business activity and generates jobs. Conversely, cutting Medicaid funds not only hurts seniors, people with disabilities and children who count on the program as their lifeline, but it also results in fewer jobs and stunts the economic recovery."

By 2021 Ryan's proposal calls for a 35% cut to state Medicaid programs. Pollack says that reduction would eliminate 38,000 jobs in Georgia and lead to more than $4 billion dollars in lesser business activity. House Republicans who favor the plan say Medicaid cuts are needed to help reduce the federal budget deficit.