Healthcare has been a reliable job creator in recent years. However, a budget plan moving through Congress could change that. The plan aims to reduce Medicaid funding by roughly 800 billion dollars. This could lead to nearly 8 million people losing their Medicaid coverage. Additionally, 2 million more could lose their Affordable Care Act insurance if tax subsidies expire.

The impact on jobs could be severe. Fewer insured people mean fewer doctor visits, prescriptions, and medical procedures. This could result in nearly 500, 000 healthcare jobs disappearing over the next decade. The expiration of ACA tax subsidies could add another 140, 000 job losses. Hospitals, health centers, and pharmacies in some areas might have to shut down due to lost revenue. This would hit rural areas hard, where Medicaid is a primary insurance source.

Healthcare has been a steady job market performer. It accounted for nearly half of the jobs added in May. Around half of the 2. 2 million jobs added last year were in healthcare. This growth has helped offset job losses in other sectors like retail and manufacturing. Economists note that healthcare has been a consistent bright spot in an otherwise sluggish job market.

The proposed cuts are part of a larger spending bill. Republicans have named it the "Big Beautiful Bill Act. " The bill aims to extend tax cuts for individuals and corporations. The Senate version of the bill could further reduce Medicaid spending. It includes a provision to limit states' use of taxes on hospitals and healthcare providers to fund Medicaid.

Rural healthcare providers would feel the pinch. In small and rural towns, 40% of children rely on Medicaid for health insurance. One-third of rural hospitals are already at risk of closing due to financial struggles. Community Health Centers, which serve mostly lower-income patients, could also be in trouble. They rely heavily on Medicaid funding and are often the only healthcare option in rural communities.

Without policy changes, healthcare was set for continued growth. Job postings for doctors, home health aides, and nurses are up significantly. Healthcare job listings make up a quarter of all active job listings. A loss of this hiring momentum could leave the job market with one less positive driver. The overall labor market is stagnant, with people hesitant to leave their jobs and companies cautious about hiring. Healthcare has been an exception to this trend.

Healthcare on the Chopping Block: What's at Stake?

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