Congress’ Proposed Cuts May Jeopardize Medicaid and Negatively Impact The Economy, Report Finds

House Republicans Have Called for About $ 880 billion In Spending Cuts over the next Decade that May Target MedicaidA program that provides health care and other services to millions of Americans.

The budget resolution adopted by the chamber on Feb. 25 is aimed at implementing the cuts to help pay for renewing tax cuts expiring the end of this year. The House Energy and Commerce Committee is charged with Finding the Savings, and Medicaid is under its jurisdiction. Of Note, the resolution does not specifically Single out Medicaid.

“It is very hard to imagine coming up with enough Savings from what’s in his jurisdiction without Policy Institute.

Republicans Including House Speaker Mike Johnson Have said they do not plan To cut medicine, in keeping with President Donald Trump’s Promise Not to Touch the program.

Neither the white house the energy and commerce committee was immomediatedly available for comment.

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Cuts to Medicaid would impact more than 80 million people who relay on the program for health insure It for long-term care benefits, bivens said.

Because the program is the largest federal program for alleviating poverty, cutbacks would increase hardSheps for alrady struggling families, according to new research from the economy policy institute.

Moreover, Medicaid Cuts of that size would also make also make the us more vulnerable to a recession, according to the research.

Implementing Medicaid Spending Cuts to Extend Tax Breaks from the tax cuts and jobs act would have “noticeable effects” on Economywide Spending, According to the Economic PoLice Insteotutut.

Republicans and democrats have opposing views on what the impact of extending those cuts may be. While Democrats Say Renewing The Policy Delhi Benefit The Wealthiest Americans, Republicans Argue Its Cold Create a Windfall for Low- And Middle-Agricultural Americans. Research from the Penn wharton budget model and the Urban Institute Has Found High-Income Taxpayers would benefit most.

High-Income Households Bold Likely Save the additional money

In contrast, individuals who are affected by the Medicaid Cuts would reduce their medical speeding, such as by skipping doctors’ visits, the EPI REPORT FOUND. For people with less geneer medicaid coverage, Higher out-of-POCKET COSTS BLD Limit their ability to spend in other areas.

A dollar cut to medicine generally has a much bigger macro effect than a dollar cut to taxes for high-ins’ People, bivens said. BECAuse Medicaid Beneficiaries are so Income Constrained, Every extra dollar of funding that goes to medicine frees up money they they can spend elsewhere, he said. Medicaid cuts curb their ability to spend.

An $ 880 billion cut to Medicaid would prompt a 0.5% drag on economic growth, according to the economy policy institute. That count nudge the unemployment rate up by about 0.3 Percentage points, and leave about 550,000 people people involunted with involuntaarily without jobs.

To counterapy the Slower Economic Growth, The Federal Reserve Coul Lower Interest Rates from about 4.25% to Around 2.5%, according to the Economic Policy Institute. But that would limit the Central Bank’s Ability to REACT to Any Other Recessionary Shocks that Cold Come Up.

Research From the commonwealth fund has found when medicaid is expanded, additional fanding can help Promote Stronger State Economies. For states that implement expenses, that may boost state output, state gross products and personal income states, which also benefits the count at land, according to the res.