Another economic study found that proposed federal cuts to AHCCCS, Arizona’s Medicaid program, could hurt the state’s economy, healthcare system and the workforce.
The analysis was prepared for the Arizona Chamber Foundation and looked at multiple spending reduction scenarios.
In the first scenario, which was described as “the most user friendly,” the report found that for every billion-dollar reduction in Medicaid spending, the state could lose more than 36,000 jobs and close to $4 billion in overall economic activity.
If the reduction is much higher, the report states that “the economic consequences would be comparable to those experienced during the Great Recession,” with 300,000 jobs potentially being lost. Nearly three-quarters of AHCCCS's $21 billion annual budget comes from the federal government.
Last week, a report a report from The Commonwealth Fund and the George Washington University Milken Institute School of Public Health projected that roughly 27,000 jobs could be lost in Arizona if the government cut Medicaid and SNAP, which provides nutrition to low-income Arizonans.
More than 2 million Arizonans rely on AHCCCS, the state's version of Medicaid, for their health care. Now lawmakers in Washington, D.C., are considering deep cuts to that program.
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Arizona Democratic Sens. Mark Kelly, left, and Ruben Gallego discuss Republican-proposed Medicaid cuts at the Neighborhood Outreach Access to Health Cholla Health Center on Monday, March 17, 2025, in Scottsdale.
Alexis Heichman/Cronkite News
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Arizona Democratic Sens. Mark Kelly and Ruben Gallego speak at their town hall about possible Medicaid cuts in Scottsdale on Monday, March 17, 2025.
Kirsten Dorman/KJZZ
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Quianna Brown and her husband, Joe, expressed frustration at the uncertainty they face raising their family in central Phoenix if Medicaid is cut.
Kirsten Dorman/KJZZ
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Arizona Democratic Sens. Mark Kelly and Ruben Gallego speak at their town hall about possible Medicaid cuts in Scottsdale on Monday, March 17, 2025.
Kirsten Dorman/KJZZ
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An attendee speaks at a town hall organized by Arizona Democratic Sens. Mark Kelly and Ruben Gallego in Scottsdale on Monday, March 17, 2025.
Kirsten Dorman/KJZZ
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A crowd waits to hear from and speak with Arizona Democratic Sens. Mark Kelly and Ruben Gallego at a town hall discussing Republican-proposed Medicaid cuts on Monday, March 17, 2025, in Scottsdale.
Alexis Heichman/Cronkite News
