(CNN) More than 30,000 Medicaid recipients in Louisiana, many in nursing or group homes, could lose their benefits due to proposed state cuts -- a situation that could force thousands to move.

Louisiana Department of Health Deputy Secretary Michelle Alletto said the agency will notify about 37,000 Medicaid recipients, whose eligibility to receive the benefit could end on July 1, they may have to move out of the nursing and group home facilities because of the lack of state funding.

The letters, which will be mailed out Thursday, also will go to Medicaid patients with developmental disabilities and some who receive home-based services to give recipients time to develop appropriate plans, the agency said. The health department also will evaluate any eligibility options, according to the agency.

"We cannot provide services with no money to pay for them," agency Secretary Dr. Rebekah Gee told reporters Wednesday.

The proposed cuts could force nursing homes to close, leaving more than 25,000 people unemployed, according to the Louisiana Nursing Home Association.

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