Urgent Action Needed: Federal Funding Bill Omits ACA Tax Credits, Threatening Coverage for Millions

The U.S. House of Representatives passed a short-term funding bill that would keep the government running through November 21, 2025, and extend several key healthcare programs. However, the bill fails to renew the Affordable Care Act (ACA) premium tax credits—a critical lifeline that helps nearly 2 million Californians afford health coverage.

What’s Included—and What’s Missing

The House’s continuing resolution (passed narrowly, 217–212) would extend:

• Pandemic-era telehealth flexibilities

• Community health center funding

• Physician workforce programs like the National Health Service Corps and Teaching Health Center GME

• The Medicare Hospital at Home program

• Medicaid Disproportionate Share Hospital payments

But it leaves out enhanced ACA premium tax credits—a move that could lead to 97% premium hikes or coverage loss for working families and small business owners across California.

Senate Pushback

The bill now moves to the Senate, where Democratic leaders have declared they will oppose any legislation that excludes ACA tax credit extensions. Senate Democrats have introduced a competing proposal that includes the tax credits, but it currently lacks bipartisan momentum.

Meanwhile, Republican leaders have signaled a desire to negotiate the tax credits separately, increasing the risk that an agreement won’t come in time to prevent widespread coverage disruptions.

What This Means for Los Angeles Physicians

Without swift Congressional action, key programs supporting access to care and physician practice viability are in jeopardy:

• Coverage Collapse: Up to 2 million Californians—many in Los Angeles—could lose health coverage or face unaffordable premiums.

• Physician Access for Seniors: Medicare physician payment rates have dropped 33% since 2001. Many physicians are limiting their Medicare participation, further straining access.

• Telehealth at Risk: Expiring waivers threaten virtual care access, especially for vulnerable populations.

• Delays in Care: Without reform, Medicare Advantage prior authorization requirements will continue to deny or delay needed care.

• Workforce Shortages: Physician pipeline programs are at risk—undermining care in already underserved communities.

Take Action: Urge Congress to Protect Your Patients—and Your Practice

LACMA+CMA urges all physicians to contact their Members of Congress now. Let them know that health coverage, access to care, and physician sustainability are on the line.

📢 Click here to contact Congress — a prewritten letter is available. Customize it to share how these decisions will affect your patients, your practice, and the future of healthcare in Los Angeles.