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American Focus > Blog > Health and Wellness > 5 Ways Medicaid Supports Main Streets Across America
Health and Wellness

5 Ways Medicaid Supports Main Streets Across America

Last updated: June 9, 2025 7:23 pm
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5 Ways Medicaid Supports Main Streets Across America
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The U.S. House of Representatives recently passed a budget reconciliation bill that includes significant cuts to Medicaid. According to the Congressional Budget Office, these cuts could result in more than $700 billion being slashed from the program, leading to nearly 11 million people losing coverage, with almost 8 million of them relying on Medicaid. The majority of these cuts are expected to come through work requirements.

Contrary to popular belief, Medicaid is not just a program that provides health insurance to low-income Americans. It plays a crucial role in supporting communities and small businesses across the country. Here are five ways in which Medicaid supports Main Streets in America:

  1. Employee Health and Productivity: Small businesses often struggle to provide comprehensive health insurance to their employees, especially those in underserved communities. By offering coverage to workers who may not qualify for employer-sponsored insurance, Medicaid ensures that employees have access to preventive care, reducing absenteeism and improving productivity while also relieving the burden of medical debt.
  2. Expanded Labor Pool: Medicaid’s healthcare safety net allows more people to enter or remain in the workforce, enabling entrepreneurs to take the risk of starting a business knowing that their families are covered. This support also increases the number of individuals available for hire in local communities.
  3. Reduced Hiring and Training Costs: When workers have consistent healthcare through Medicaid, they are less likely to leave their jobs for better health insurance elsewhere. This helps small businesses save money on recruiting and training new staff, allowing them to focus on growth rather than turnover-related challenges.
  4. Empowered Entrepreneurs: For self-employed individuals or those starting a business, Medicaid provides essential health coverage during the uncertain startup phase. It also empowers individuals to pursue entrepreneurship instead of remaining in a job solely for health insurance.
  5. Stronger Local Economies: When individuals have more disposable income due to not having to spend it all on healthcare, they are able to support local businesses. Medicaid funds also benefit healthcare providers, including rural clinics and pharmacies, which in turn support the local economy by creating jobs in various sectors.

    The economic strength of a community is closely tied to the health of its workforce and entrepreneurs. Medicaid plays a vital role in supporting workforce stability, entrepreneurship, economic mobility, and small business growth. The proposed cuts to Medicaid could have significant negative impacts on Main Streets and their communities, potentially leading to job losses and decreased economic activity. It is crucial to consider the broader implications of these cuts on the overall health of our communities and economies.

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