Medicaid Cuts

Question A: Reducing Medicaid spending in Ohio by $37 billion over the next ten years will have significant economic ramifications beyond loss of health insurance for current Medicaid recipients.

Question B: Reducing Medicaid spending in Ohio by $37 billion over the next ten years will cause a severe recession in the state.

Question A: Reducing Medicaid spending in Ohio by $37 billion over the next ten years will have significant economic ramifications beyond loss of health insurance for current Medicaid recipients.

Economist Institution Opinion Confidence Comment
Jonathan Andreas Bluffton University Agree 9 It will raise personal bankruptcies, increase the overload at emergency rooms, hurt hospital finances, and people will have worse health or die due to losing their healthcare. On the benefit side, it helps reduce the federal budget deficit to accommodate the other fiscal priorities of the Big Beautiful Bill.
David Brasington University of Cincinnati Uncertain 6
Kevin Egan University of Toledo Agree 8
Kenneth Fah Ohio Dominican University Agree 8
Bob Gitter Ohio Wesleyan University Agree 8 More sick time, potential job losses due to missed time at work, and potential closing of rural hospitals.
Nancy Haskell University of Dayton Strongly Agree 9
Paul Holmes Ashland University Strongly Agree 10
Faria Huq Lake Erie College Strongly Agree 9
Michael Jones University of Cincinnati Strongly Agree 7
Charles Kroncke Mount Saint Joseph University Agree 10 Denying health care may reduce the supply of labor. If people are unhealthy, they will not be able to work.
Bill LaFayette Regionomics Strongly Agree 10 People who lose their insurance will suffer more chronic illnesses which will negatively affect their own ability to work, as well as the ability to work of their caregivers. The need for nonprofit hospitals to take on more uncompensated care will weaken their finances and could cause some to close. This will have ripple effects through the local economy and the local workforce.
Trevon Logan Ohio State University Strongly Agree 9
Joe Nowakowski Muskingum University Strongly Agree 10 This will lead to increased morbidity and mortality. Furthermore workers will have an incentive to migrate to states, or countries, with an interest in maintaining the health of their workers.
Curtis Reynolds Kent State University Agree 8
Albert Sumell Youngstown State University Strongly Agree 10 It's been well documented that there are significant negative externalities associated with loss of health insurance, including economically
Iryna Topolyan University of Cincinnati Agree 10
Ejindu Ume Miami University Agree 7
Rachel Wilson Wittenberg University Strongly Agree 10 Rural hospitals may be forced to close, along with other medical offices, leading to widespread job losses in the healthcare sector. The resulting decline in income will ripple through the broader economy, reducing consumer spending and local economic activity. Additionally, a rise in the number of uninsured individuals may lead to a less healthy workforce, which could negatively impact productivity. Cuts to Medicaid may also reduce access to mental health services, potentially contributing to higher crime rates—another factor that can dampen economic growth.

Question B: Reducing Medicaid spending in Ohio by $37 billion over the next ten years will cause a severe recession in the state.

Economist Institution Opinion Confidence Comment
Jonathan Andreas Bluffton University Disagree 5 Yes the Medicaid cuts would recessionary if I take the question literally and ignore the context, but they are part of the Big Beautiful Bill which also includes massive inflationary tax cuts, so the net result is mainly redistribution from the sick to the rich and not austerity. In fact, the Big Bill is more inflationary than recessionary because it blows up the deficit. If there is a recession in the near future, it is more likely to be caused by trade disruption and other federal mismanagement (like higher deficits raising interest rates and cronyism or higher inflation) causing a collapse in business investment. Or we could have another financial crisis, but that is hard to predict!
David Brasington University of Cincinnati Strongly Disagree 10
Kevin Egan University of Toledo Disagree 8
Kenneth Fah Ohio Dominican University Uncertain 9
Bob Gitter Ohio Wesleyan University Disagree 7 This is less than $4 billion per year or under one half of one percent of Ohio's GDP. The effect will be negative but won't cause a severe recession.
Nancy Haskell University of Dayton Uncertain 5
Paul Holmes Ashland University Disagree 7
Faria Huq Lake Erie College Agree 6
Michael Jones University of Cincinnati Disagree 5
Charles Kroncke Mount Saint Joseph University Agree 9 Reducing medical spending takes money directly out of the medical sector and reduces the supply of potential workers.
Bill LaFayette Regionomics Disagree 8 It will certainly have negative economic ramifications but I think "severe recession" is too strong.
Trevon Logan Ohio State University Agree 5
Joe Nowakowski Muskingum University Agree 8
Curtis Reynolds Kent State University Disagree 5 I don't think that it is enough to cause a recession although it will be very bad for parts of the Ohio economy.
Albert Sumell Youngstown State University Disagree 10
Iryna Topolyan University of Cincinnati Agree 7 I am not certain about the severity of recession, but I am fairly confident that this cut will spur recession. The direct effect of reduced spending on medical services, amplified by the multiplier effect, will be observed in the short-run. Moreover, there will be economic loss due to sick days as a result of poorer health. Additionally, in the long-run there will be a negative effect of deteriorating human capital due to worse health outcomes.
Ejindu Ume Miami University Disagree 8
Rachel Wilson Wittenberg University Uncertain 10 The economy is too dynamic to make any prediction like that