Report: Ryan’s Medicaid Proposal Would Affect California Jobs, Revenue
Enacting the Medicaid cuts proposed by House Budget Committee Chair Paul Ryan (R-Wis.) could mean that California would lose tens of thousands of jobs and billions of dollars in revenue, according to a report by Families USA, New America Media reports.
The Families USA report, called "Jobs at Risk," looks at how Ryan's Medicaid proposal would affect state economies (Sundaram, New America Media, 6/30).
Background
Under Ryan's proposal -- which is included in the House-approved fiscal year 2012 budget resolution (H Con Res 34) -- states would receive fixed annual block grants of $11,000 per Medicaid beneficiary to use as they choose.
The proposal is part of Ryan's broader budget blueprint (California Healthline, 6/10).
Key Findings
According to the Families USA report, Ryan's plan would result in a 5% cut in the federal share of Medicaid spending in 2013, a 15% cut in 2014 and a 33% cut in 2021. The report estimates that:
- Implementing a 5% cut in federal Medicaid spending this year would cost California nearly $1.6 billion in federal Medi-Cal dollars, and put $3.7 billion in business activity and 28,440 job at risk;
- Enacting a 33% cut in federal Medicaid spending this year would cost the state more than $10.3 billion in federal Medi-Cal funds, and put $24.4 billion in business activity and 187,690 jobs at risk. Medi-Cal is California's Medicaid program (Goldeen, Stockton Record, 6/30).