Wednesday, February 24, 2010

Cost of Health Care Cuts: $2.7 billion

Posted By on Wed, Feb 24, 2010 at 2:52 PM

Remember how we mentioned that the Arizona Chamber of Commerce didn't like the notion being floated by Gov. Jan Brewer and state lawmakers about cutting more than 300,000 people below the federal poverty line from state health insurance?

Turns out that somebody crunched some numbers. Casey Newton of the Arizona Republic reports:

An estimated $2.7 billion and 42,000 jobs will leave the state if the Legislature approves proposed cuts to health care, according to an analysis by economists at Arizona State University.

The Arizona Hospital and Healthcare Association hired the economists to evaluate Gov. Jan Brewer's budget proposal. The proposal, which could be voted on as early as next week, includes deep cuts for AHCCCS, reduced support for rural hospitals, the elimination of KidsCare and cuts to a program that brings new doctors to the state.

The governor's proposal would result in $1.15 billion in cuts directly to hospitals, according to John Rivers, president of the hospital association. Combined with a loss in federal matching funds, the loss to Arizona is an estimated $2.7 billion.

But just keep telling yourself that the health-care system is fine and doesn't need reform.


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