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O'Malley Warns Medicaid Cuts Could Lead To Job Losses

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By Matt Bush

Maryland governor Martin O'Malley is warning of serious economic consequences if federal Medicaid funds are cut. Congress is looking at cutting that funding, called Federal Medical Assistance Percentages or FMAP, $24 billion.

Maryland would lose around $400 million. Governor O'Malley says his state is in better shape than others to weather any reductions, but he hopes it doesn't come to that.

"I think it would be a grave mistake not to pass FMAP, and I think it could precipitate a dip back into months and months of job losses. The private sector is starting to see some gains, and we don't want to wipe those gains out," says O'Malley.

O'Malley says if the state doesn't receive the money, it would have to dip into a contingency fund to cover the costs. Other states, like Pennsylvania, are warning of layoffs of thousands of government workers if funds are cut.

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