Proposed federal cuts to Medicaid could cost North Carolina thousands of jobs and billions of dollars in business activity, warns a report by Families USA.
The nonpartisan health and consumer advocacy group is pushing Washington lawmakers to avoid slashing Medicaid as they consider ways to reduce the federal budget deficit.
“This is exactly the wrong time for Congress to cut a program that boosts the economy while also providing a boost to individuals and families facing hard economic times," said Ron Pollack, executive director of Families USA, in a prepared statement.
A 5 percent cut in federal funding for Medicaid spending this year would cost North Carolina $431.7 million in federal Medicaid money, and put at risk about $942 million in business activity and 8,890 jobs, the group reports.
Those projections put North Carolina among the top 10 states that would take the biggest hit. New York is No. 1.
A 15 percent cut could reduce business activity by $2.8 billion and cost 26,660 jobs in this state.
Medicaid is the federal-state health program that serves about 1.4 million low-income parents, children, seniors and people with disabilities across North Carolina. About three-quarters of its $10 billion annual budget in North Carolina is paid by federal dollars, and the state picks up the rest.
Families USA's "Jobs at Risk" report used an economic modeling system to estimate the impact of Medicaid cuts on states' economies, including in North Carolina.
Read the full report here.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or 
Comments
Is this article a joke?
Thu, 06/23/2011 - 00:02 — jesmyopinionIs this article a joke?????
And Families USA is not nonpartisan - they are about as liberal as you can get in relation to health care. I thought that was common knowledge...
So What
Wed, 06/22/2011 - 14:51 — OlBlueIn a state with a population of 9.5 million, we have 1.4 million dependent on Medicaid? Around 15%? An anunemployment rate of around 9.7%. Doesn't take a genius to figure out we don't need to CUT education funding to get out of that hole! Why would any large company move here?
Does Families USA have any
Wed, 06/22/2011 - 13:16 — PhantomLordDoes Families USA have any plans on putting out a report on the economic damage that will be done by Obama and the democrats with Obamacare's $500 BILLION in Medicare cuts?
I doubt it.