Arizona business community warns of potential fallout from federal Medicaid cuts

Arizona’s leading business organizations are urging the state’s congressional delegation to reject potential cuts to Medicaid in the budget reconciliation bill currently under debate on Capitol Hill.  

In a letter signed by major business and economic development organizations across the state, the groups warn that cuts at a federal level would shift billions of dollars in costs to Arizona taxpayers and would jeopardize coverage for hundreds of thousands of residents, straining hospitals and threatening the state’s economy. 

 “As business leaders, we are deeply concerned about the devastating impact that federal Medicaid cuts would have on Arizona’s economy and health care system,” Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said. “AHCCCS is a national model for cost-effective health care delivery, and gutting its funding would lead to skyrocketing uncompensated care costs, job losses, and a serious blow to our state’s economic momentum. We urge the Arizona congressional delegation to protect Arizona’s ability to provide stable, responsible health care access.” 

The letter outlines the sweeping consequences of Medicaid cuts, including the potential loss of coverage for as many as 500,000 Arizonans, severe financial strain on hospitals and providers, and a sharp increase in the cost of private health insurance. Arizona’s business community also warns that these cuts would have dire economic consequences, estimating the potential loss of nearly 300,000 jobs statewide and a reduction of $30 billion in economic output—a blow comparable to the Great Recession. 

“The impact of these cuts is potentially catastrophic for Southern Arizona,” said Ted Maxwell, president and CEO of the Southern Arizona Leadership Council. “This isn’t just a health care issue—it’s an economic issue that affects every employer and community in Arizona. A drastic reduction in AHCCCS funding would create an economic ripple effect, forcing hospitals to scale back services, employers to absorb higher healthcare costs, and state budget officials to scramble for solutions. That’s why business groups across Arizona are urging the congressional delegation to stand up for our state and reject these misguided cuts.” 

In addition to the Arizona Chamber of Commerce & Industry and the Southern Arizona Leadership Council, the letter was signed by: 

• Arizona Chamber of Commerce & Industry
• Arizona Hispanic Chamber of Commerce
• Buckeye Valley Chamber of Commerce
• Greater Flagstaff Chamber of Commerce
• Greater Phoenix Chamber
• Greater Phoenix Economic Council (GPEC)
• Greater Phoenix Leadership (GPL)
• Nogales Santa Cruz County Chamber of Commerce
• Sky Islands Regional Partnership
• Southern Arizona Hispanic Chamber of Commerce
• Southern Arizona Leadership Council (SALC)
• Southwest Veterans Foundation & Chamber of Commerce
• Tucson Metro Chamber

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