Study: States won't cut Medicaid because it's a cash cow

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States won't scale back Medicaid because they depend on the program as a federal cash cow to fund some other state expenses while subsidizing hospitals and nursing homes, according to a study by the Nelson A. Rockefeller Institute of Government in Albany, NY.

Researchers analyzed 10 randomly selected states: Arizona, Colorado, Kansas, Michigan, New Jersey, Ohio, Oregon, Texas, West Virginia and Wisconsin.  They found that while higher education and transportation were cut, health programs went relatively untouched.

Researcher Courtney Burke pointed out states preserve Medicaid because it is an economic development tool and it serves a large constituency.

The study was sponsored by the Robert Wood Johnson Foundation.
Study: States won't cut Medicaid because it's a cash cow

States won't scale back Medicaid because they depend on program as a federal cash cow to fund some other state expenses while subsidizing hospitals and nursing homes, according to a study by the Nelson A. Rockefeller Institute of Government in Albany, NY.

Researchers analyzed 10 randomly selected states: Arizona, Colorado, Kansas, Michigan, New Jersey, Ohio, Oregon, Texas, West Virginia and Wisconsin.  They found that while higher education and transportation were cut, health programs went relatively untouched.

Researcher Courtney Burke pointed out states preserve Medicaid because it is an economic development tool and it serves a large constituency.

The study was sponsored by the Robert Wood Johnson Foundation.