With the federal government expected to reduce spending on Medicaid by $698 billion over the next decade, an estimated 10.3 million people will no longer be enrolled, a new study from the Journal of the American Medical Association says.
The impact of removing 10.3 million from Medicaid could have far-reaching effects.
The study, authored by researchers from the University of California, San Francisco, the University of Pennsylvania, the University of North Carolina, and Waymark Care, suggests the loss of Medicaid coverage could increase the number of preventable hospitalizations.
The study says that Medicaid cuts will result in an estimated 94,802 preventable hospitalizations. Additionally, it will cause 1,484 excess deaths. This is due to people on Medicaid avoiding treatment for preventable health issues.
The reduction of Medicaid could also have a profound impact on rural hospitals. The study estimates that over 100 rural hospitals are at risk of closing in the next decade due to a reduction in federal funding.
RELATED STORY | Planned Parenthood goes to court to challenge Medicaid funding cuts
There is also an economic impact. The study claims Medicaid cuts will cause over 300,000 people to lose their jobs, reducing the nation's gross domestic product by $135 billion.
"Medicaid affects many different aspects of people's lives," said Dr. Seth A. Berkowitz, co-author of the study and associate professor of medicine at the University of North Carolina School of Medicine. "When Medicaid gets cut, there are of course health impacts to the people who lose coverage. But there are also important impacts to the broader community, and policymakers need to consider those impacts as well."
More than 70 million Americans are on a form of Medicaid, according to recent government statistics. Medicaid recipients will soon have to verify their work activities with the federal government.
Exemptions will be allowed based on age and life events, such as certain medical conditions. According to a recent poll by the Kaiser Family Foundation, 62% of Americans support the idea of work requirements for Medicaid. At the same time, additional polling from Kaiser found that around 64% of Medicaid recipients already have a full- or part-time job, while 28% reported being unable to work due to illness, caregiving, or education. Eight percent reported being retired, unable to find work, or for other reasons.
