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Medicaid Reductions Could Cut Deep in Rural Tennessee

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Thursday, June 8, 2017   

NASHVILLE, Tenn. – Medicaid is sustaining Tennessee's rural towns in terms of children's health and the economy, according to a report from the Georgetown University Center for Children and Families.

Researchers found across the nation, a higher percentage of children in rural areas count on Medicaid compared to urban areas.

Kinika Young, director of children's health for the Tennessee Justice Center, points out that, with Tennessee leading the country in hospital closures, entire rural economies could be at risk.

"If there's any tinkering with the funding, the hospital could face a lot of cutbacks or even closure,” she states. “And if that happens, not only do people lose a place to go if they need health care, but you also lose a large employer in the county."

Nine hospitals have closed in recent years in the Volunteer State, and 32 are in danger of closing.

According to the Georgetown data, 50 percent of rural Tennessee children are enrolled in Medicaid, compared to 39 percent of children in metro counties.

The report says the figures underscore the importance of preserving funding for Medicaid as Congress debates the American Health Care Act.

Joan Alker, executive director of the Georgetown University Center for Children and Families, calls Medicaid a crucial support for children, families, seniors and people with disabilities.

"Our nation's leaders face a really important decision on whether or not to cut Medicaid and turn their backs on the progress we've made in helping children and families,” she states. “That's so important for folks to understand that the Medicaid program is really the backbone of health insurance in these rural areas and small towns."

Young adds providing proper health coverage to children, particularly in rural communities, also can broaden the tax base and reduce need for public assistance later on.

"Children who have health care coverage under Medicaid tend to make better grades,” she points out. “They're more likely to attend college and therefore, they're more likely to get higher paying jobs, which in turn leads to them paying more in taxes."

According to the report, the number of children on Medicaid has increased by 5 percent since 2009.





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