Job Losses Expected in Pennsylvania if Medicaid Cuts Enacted

March 27, 2025

Pennsylvania will see the loss of thousands of jobs if proposed federal cuts to Medicaid are enacted under a U.S. House proposed budget resolution. The negative impact may also show up in reduced economic activity and less state revenue, according to a new report by the Commonwealth Fund.

The House resolution calls for cutting at least $880 billion over the next decade for programs under the jurisdiction of the House Energy and Commerce Committee, which oversees Medicaid.

Here are some key takeaways:

• Pennsylvania will be among the hardest hit:  The commonwealth ranks fourth in potential job losses due to Medicaid cuts. Close to 42,000 Pennsylvania jobs may be lost in 2026 if Medicaid is cut, including almost 22,000 direct health positions.
• Nationwide impact:  Combined, potential cuts to Medicaid and the Supplemental Nutrition Assistance Program represent a more than $1.1 trillion loss of services that millions of low-income Americans rely upon, the report indicates.
• Trickle-down effect:  Reduced federal Medicaid funds would lead to reductions in state Medicaid programs’ budgets. In turn, the loss of insurance coverage lowers revenue to health care providers, like hospitals, clinics, pharmacies, and nursing homes.

The analysis is available online.

HAP and Pennsylvania hospitals are advocating with the state’s congressional delegation to protect Medicaid and its vital role supporting access to care. See HAP’s infographic highlighting the critical importance of Medicaid to Pennsylvania and letter to the state’s congressional delegation online.