Perryman | The High Cost of Millions of Americans Losing Health Insurance Coverage
The current federal budget bill, which was recently passed by the House of Representatives, if ultimately implemented in its present form, involves changes to Medicaid which will have the effect of significantly reducing the numbers of people covered over time. The Congressional Budget Office estimates that by 2034, some 7.6 million more Americans would be uninsured due to the provisions of the Act.
The economic costs of 7.6 million fewer people having Medicaid coverage will be substantial, with harms spread across the country. The Perryman Group estimated the economic costs of decreasing the number of Americans covered by health insurance by 7.6 million as of 2034 and found that, if the situation persists, losses include $329.2 billion (in 2025$) in annual gross product and almost 3.0 million jobs (including multiplier effects). Note that these estimates account for the potential offsetting benefit of deploying the saved fiscal resources in other ways.
Millions of American children and adults do not have health insurance, and the proposed reductions only exacerbate the problem. Most cannot afford private insurance and find it difficult to obtain basic or preventive health care. Medicaid alleviates a substantial portion of this problem and supports the nation’s health care system, thus improving sustainability as well as providing a substantial net economic benefit. Reducing the number of people with health insurance coverage through Medicaid not only makes it harder for Americans to access the care they need, but also leads to notable economic losses.
For more details please refer to the full brief, available on our website as a PDF.
From The Perryman Group | By M. Ray Perryman, Ph.D.
Dr. Ray Perryman is President and CEO of The Perryman Group, an economic research and analysis firm based in Waco, Texas. His firm has served the needs of more than 3,000 private-sector clients, including two-thirds of the Global 25, over half of the Fortune 100, the 12 largest technology firms in the world, 12 US Cabinet Departments, the 9 largest firms in the US, the 6 largest energy companies operating in the US, and the 5 largest US financial institutions. The firm has also completed over 1,000 public policy studies on a variety of issues. He dedicates a significant portion of his time to pro bono work aimed at helping to solve pressing social problems such as hunger, indigent healthcare, poverty, and child maltreatment.
Perryman | The High Cost of Millions of Americans Losing Health Insurance Coverage
The current federal budget bill, which was recently passed by the House of Representatives, if ultimately implemented in its present form, involves changes to Medicaid which will have the effect of significantly reducing the numbers of people covered over time. The Congressional Budget Office estimates that by 2034, some 7.6 million more Americans would be uninsured due to the provisions of the Act.
The economic costs of 7.6 million fewer people having Medicaid coverage will be substantial, with harms spread across the country. The Perryman Group estimated the economic costs of decreasing the number of Americans covered by health insurance by 7.6 million as of 2034 and found that, if the situation persists, losses include $329.2 billion (in 2025$) in annual gross product and almost 3.0 million jobs (including multiplier effects). Note that these estimates account for the potential offsetting benefit of deploying the saved fiscal resources in other ways.
Millions of American children and adults do not have health insurance, and the proposed reductions only exacerbate the problem. Most cannot afford private insurance and find it difficult to obtain basic or preventive health care. Medicaid alleviates a substantial portion of this problem and supports the nation’s health care system, thus improving sustainability as well as providing a substantial net economic benefit. Reducing the number of people with health insurance coverage through Medicaid not only makes it harder for Americans to access the care they need, but also leads to notable economic losses.
For more details please refer to the full brief, available on our website as a PDF.
From The Perryman Group | By M. Ray Perryman, Ph.D.
Dr. Ray Perryman is President and CEO of The Perryman Group, an economic research and analysis firm based in Waco, Texas. His firm has served the needs of more than 3,000 private-sector clients, including two-thirds of the Global 25, over half of the Fortune 100, the 12 largest technology firms in the world, 12 US Cabinet Departments, the 9 largest firms in the US, the 6 largest energy companies operating in the US, and the 5 largest US financial institutions. The firm has also completed over 1,000 public policy studies on a variety of issues. He dedicates a significant portion of his time to pro bono work aimed at helping to solve pressing social problems such as hunger, indigent healthcare, poverty, and child maltreatment.
[Courtesy illustration by Hush Naidoo Jade Photography on Unsplash]
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