Report: Medicaid Cuts Will Result in Economic, Job Losses

June 11, 2025

Pennsylvania would lose hundreds of thousands of jobs and tens of billions in economic impact if Congress enacts sweeping cuts to Medicaid spending, an analysis by the American Hospital Association (AHA) found.

The analysis comes as Congress considers budget reconciliation legislation that proposes deep cuts to Medicaid spending. For each $1 billion reduction in federal Medicaid funding to Pennsylvania over the next decade, the AHA found that the commonwealth would lose 13,352 jobs and $1.8 billion in economic activity.

“Medicaid cuts would destabilize communities, harming the economic security and health of the millions of people who keep our economy running strong,” the AHA analysis noted.

Here’s a look at some key findings:

• Estimated losses:  Based on the cuts to Pennsylvania Medicaid estimated by KFF’s analysis of the House-passed reconciliation bill, the commonwealth stands to lose more than 467,000 jobs and $63 billion in economic activity over 10 years.
• Ripple effects:  Of the Pennsylvania jobs lost under the current legislation, 54,670 would be from hospitals. The others would result from ripple effects in the state and local economies.
• Tax revenue at stake:  Each $1 billion in Medicaid cuts to Pennsylvania would result in a $53.6 million hit to federal, state, and local tax revenue over 10 years—nearly $1.9 billion based on the current bill language.

The AHA analysis is available online. Learn more online about the vital importance of Medicaid and hospitals to the health and vitality of Pennsylvania communities.