Analysis: $1.4 billion from feds for Medicaid would be boon to Ohio economy

An analysis by advocacy group Families USA concludes that an additional $1.4 billion in federal funds that could be coming to Ohio next year to shore up the Medicaid program would create 24,900 jobs with $897 in wages and would inject $2.5 billion in new business activity into the state economy(Source: “Ohio may get $1.4 billion in federal funds for Medicaid,” Cleveland Plain Dealer, Dec. 16, 2008).

Families USA based its state-by-state economic impact analysis on legislation already introduced by Senate Majority Leader Harry Reid, Democrat of Nevada. That legislation would provide close to $40 billion in temporary, additional federal funding for state Medicaid programs.

The National Governors Association and President-elect Barack Obama's transition team developed a similar proposal for $40 billion when they met recently.