A new report finds New York small businesses could close due to proposed Medicaid cuts.
The Georgetown University Center for Children and Families report finds one third of all Medicaid enrollees nationwide work at or are family of folks at small businesses.
But proposed cuts in the Congressional Budget Reconciliation bill could force small business employees to find jobs with employer-sponsored insurance.
Janna Rodriguez owns Innovative Daycare Corp in Freeport. She said losing staff due to Medicaid cuts would have a domino effect.
“If I lose even one staff member,” said Rodriguez, “I may have to either reduce childcare slots, turn away families, delay opening my second location, and increase tuition for working families who are already financially stretched.”
Northeastern states like New York could be hardest hit by the proposed $700 billion in cuts. Other reports show the cuts could boot 1.5 million people off their insurance, at a time when private healthcare plans are increasing in price.
The Economic Policy Institute finds private-market health plans can cost some families more than what they earn in a year.
The Georgetown report notes around 11 million children of small business owners and their employees use Medicaid nationwide. This comes as reports show more kids in New York don’t have health insurance.
Joan Alker, the executive director of the Georgetown University Center for Children and Families, said work requirements could also prove challenging.
“Even though you would think folks who are working in small businesses would meet the rule, it’s the 20 hour rule, and that would be no problem for them, but the problem is documenting and getting exemptions,” said Alker. “And, we all know, unfortunately, government doesn’t work perfectly.”
Because states might have higher Medicaid eligibility levels for kids than adults, children are more likely to be covered than their parents.
However, part of the cuts would mean states have to make up the lost federal funding, which could move funding from other important programs.
Edwin is a reporter and producer in North Tonawanda, New York. He’s previously reported for the Niagara Gazette and the Ithaca Times. Edwin got an early start in radio interning for WBFO-88.7FM, NPR’s Buffalo affiliate. In 2018, he graduated from SUNY Buffalo State College with a B.A. in Journalism, and in 2022, graduated from Syracuse University with an M.S. in Communications.