Urgent Call to Action: Reject Devastating Medicaid Cuts

CMA's Plea to Congress

As Congress moves forward with budget reconciliation legislation, the California Medical Association (CMA) is urging California’s congressional delegation to reject the devastating Medicaid cuts. These cuts will undermine the health and economic stability of California communities and harm access to care for generations to come.

In a June 23 letter, CMA President Shannon Udovic-Constant, M.D., warned that the proposals in HR 1 and the Senate Finance Committee’s companion legislation would lead to catastrophic coverage losses for millions of residents.

“As physicians, we are sounding the alarm: Californians will die if this bill is enacted,” Dr. Udovic-Constant wrote.

The Risks of Medicaid Cuts

These bills reverse years of progress that California has made to cover the uninsured and expand access to care. An alarming 16 million Americans, including 2-3 million Californians, are projected to lose their health care coverage under these proposals. Furthermore, the Senate plan increases the Medicaid cuts by approximately $200 billion more than the House cuts, totaling over $900 billion in overall Medicaid reductions.

Among the key concerns highlighted in CMA’s letter are:

• Massive Medicaid Cuts: The Senate bill proposes nearly $1 trillion in Medicaid cuts, which include slashing provider taxes and state-directed payments that fund California’s Medi-Cal program. CMA warns that these provisions could lead to the closure of hospitals, clinics, and physician practices throughout the state.

• Loss of Coverage for Millions: The Congressional Budget Office estimates that 16 million Americans—including up to 3 million Californians—could lose coverage due to proposed changes to Medicaid and the Affordable Care Act (ACA).

• Threats to Rural Health Care: Rural hospitals and providers, already facing staff shortages and financial challenges, would be the most affected. The University of California has estimated that over 200,000 health care jobs in California could be lost as a result.

The Implications for California Communities

Medicaid Expansion

The proposed bills would effectively end Medicaid expansion in 41 states, including California. This would strip coverage from low-income working adults, further increasing disparities in health outcomes across the state.

Administrative Burdens

CMA strongly opposes administrative red tape that could kick millions of eligible Medicaid recipients off coverage due to punitive work verification rules. These cumbersome work requirements could add unnecessary stress to families already struggling to make ends meet.

ACA Subsidies at Risk

Without action from Congress, ACA premium tax credits are at risk of expiration. This would threaten affordability for more than 660,000 Californians enrolled through Covered California. People rely on these subsidies to access critical health services.

Student Loan Program Rollbacks

The proposed cap on federal student loans and the elimination of Public Service Loan Forgiveness (PSLF) eligibility during medical residency would worsen physician shortages, especially in underserved areas. These changes would deter new medical professionals from entering vital fields.

Medicare Payment Issues

CMA has also called on Congress to address the 2.8% Medicare physician payment cut and provide necessary inflationary updates. This action is essential to ensure that seniors continue to have access to care.

CMA urges lawmakers to reject these harmful proposals and instead work collaboratively toward health care reforms that preserve access, equity, and sustainability.

Protecting Progress

“Californians are proud to have one of the lowest uninsured rates in our history and in the nation,” the letter concludes. “The physicians of California urge you to protect these important advances by rejecting the draconian Medicaid cuts and the student loan cutbacks, extending the ACA premium tax credits, and addressing the failure to improve Medicare physician payment.”

The urgency of this situation cannot be overstated. The impact of these proposed cuts will resonate for generations, compromising the health of countless individuals in California. Read the letter here.

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