Report: Medicaid work requirements could cost Kentucky jobs, tax revenue
A new report from the Commonwealth Fund showed between 8,000 and 12,000 Kentuckians could lose their jobs as a result of the state implementing Medicaid work requirements, which would cause more people to lose health coverage.
Leighton Ku, professor of health policy and management at George Washington University and co-author of the report, said around half of job losses would occur in health care and the other half downstream, in other industries connected to hospitals and doctor’s offices. He added many rural health care providers rely heavily on patients with Medicaid to operate, noting without the funds, they will have to make tough choices.
“Health care providers, they have to compensate for that by doing things like laying off staff and by buying less from people who they purchase things from,” Ku pointed out. “Whether it’s medical equipment or whether that’s how they pay the rent for their space.”
Rep. Brett Guthrie, R-Ky., heads the committee spearheading the effort to slash $880 billion in federal funding for Medicaid over the next decade. In a recent op-ed, Guthrie argued, “Washington can’t afford to undermine the program further by subsidizing capable adults who choose not to work.”
The Commonwealth ranks sixth-highest among states in its share of its population covered by Medicaid, according to the Kentucky Center for Economic Policy. Of the 435 congressional districts across the nation, four of Kentucky’s rank within the top 100 for the largest share covered by Medicaid.
Ku stressed Kentucky should brace for a billion dollars in economic losses, if health care workers are laid off.
“Relatively speaking, the state of Kentucky gets hurt more than almost any other state in the country,” Ku added.
This week, the American Association of American Medical Colleges expressed concern the cuts would limit coverage and access to care for many of the 70 million Americans, including those of its member hospitals, who account for 29% of all Medicaid inpatient days.
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